EIGR - Ukraine War Update: BlackRock sees slowing global growth

Update 12:08 p.m. ET: "The war in Ukraine has already caused a terrible human toll," the BlackRock Investment Institute said in a note. "We see it extracting a heavy economic price as well, mostly via higher energy costs. This is a major supply shock layered onto an existing one, and we see it resulting in higher inflation and lower growth, especially in the euro area." "This puts central banks in a bind: Trying to contain inflation will be more costly, and they can’t cushion the growth shock. We prefer developed equities in this inflationary environment." "What does this mean for investment? We prefer to take risk in DM equities against the inflationary backdrop of negative real bond yields. We expect the global energy shock to hurt corporate earnings, especially in Europe. Recent market declines reflected this, we believe, and the region’s stocks are highly geared toward global growth. We stay underweight

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Ukraine War Update: BlackRock sees slowing global growth