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The global equity rally may still have some way to go as more money returns to the market, said BlackRock CEO Larry Fink on Tuesday.
Equities have benefited this year from apparent progress in trade negotiations between the US and China and a re-calibration of expectations for global monetary policy.
The Federal Reserve has reduced its rate guidance to reflect no increase in 2019. The US central bank also said it would end its bankruptcy process sooner than expected. At the same time, the European Central Bank has pushed back expectations of future rate hikes. He also announced last month the granting of cheap loans to banks in the region.
"Many people thought we would be in a period of rising rates, we were not, and we saw huge under-investment and people had to rush to fixed income," Fink said. "We have not seen that in the actions yet."
Fink added that, as central banks are "more dovish than ever …, it lacks good badets" for investors, which could trigger the merger of the global stock market.
Fink's comments follow the release of results superior to those expected from BlackRock. However, the overall business figure of the company was below expectations with a 7% drop from one year to the next. Shares fell about 0.6% in pre-market trading.
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