Global Market: BlackRock turns cautious on emerging market stocks, upgrades euro zone bonds

BlackRock Investment Institute downgraded emerging market equities to neutral from small overweight, citing a more balanced risk-reward outlook, though it flagged selective opportunities in Latin America on AI infrastructure demand. The institute also cut EM hard-currency debt to neutral while upgrading EM local-currency bonds to small overweight, and raised euro zone government bonds to overweight, preferring short- and medium-duration debt as it views markets as pricing in overly restrictive euro zone rates.