PTEU - Why We Upgrade European Assets
We have closed our underweight in European equities and credit, and upgraded government bonds to overweight. The impetus? We see the European Central Bank ((ECB)) delivering fresh stimulus over coming months, against a backdrop of a stabilizing growth outlook and persistent inflation undershoots.
Chart of the week
BlackRock financial conditions indicator for eurozone, 2010-2019
Sources: BlackRock Investment Institute and Bloomberg, July 2019.
Notes: The line shows the rate of gross domestic product growth implied by our financial conditions indicator ((FCI)) for the eurozone, based on its historical relationship with our Growth GPS. The BlackRock Growth