BlackRock Downgrades Emerging Market Stocks Due to AI Risks

CoinFeed June 30 news, BlackRock's research arm stated in its mid-year 2026 global investment outlook report that it is cautious on emerging market stocks, while bullish on eurozone short- and medium-term government bonds. For the former, the report noted AI concentration risks. For the latter, the report believes that policy concerns over the interest rate outlook seem overdone. The world's largest asset manager has downgraded its rating on emerging market stocks for the next 6 to 12 months from 'overweight' to 'neutral'. The report pointed out risks in markets like South Korea, which are heavily reliant on AI-related companies.