Blackrock ups U.S. equities to overweight, cuts Europe
LONDON (Reuters) - The world's top asset manager BlackRock has upgraded U.S. equities to "overweight", turning bullish on quality large cap technology companies as well as small cap firms that tend to perform well during a cyclical upswing.
In a note received on Monday, BlackRock said it had also downgraded European equities to "underweight", just three weeks after cutting allocations to "neutral". It cited the region's high exposure to financials.
"We prefer avoiding more structurally challenged cyclical exposures. We have downgraded European equities to underweight," Mike Pyle, global chief investment strategist at the BlackRock Investment Institute, said in a note to clients.
"The European market has a relatively high exposure to financials, which we see pressured by low rates."
(Reporting by Thyagaraju Adinarayan; editing by Sujata Rao)
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