BlackRock Strategist: Market May Underestimate French Risks

On June 28th, Jinshi Data reported that Wei Li, a strategist at BlackRock, said that the high uncertainty surrounding the French parliamentary elections means that the stock market is unlikely to have fully absorbed the risks. 'We cannot say that the risks have been completely absorbed now,' said Wei Li, Global Chief Investment Strategist at the BlackRock Investment Institute, 'the range of outcomes is unusually uncertain. It is still difficult to make significant asset allocation decisions now,' said Wei Li. 'We hope to have more visibility before making any changes.' Wei Li said that the performance of European stock markets in June was poor, with the French CAC 40 index falling by about 6% since the announcement of early elections, making stock valuations attractive in the face of solid earnings prospects. Since July 2022, she has maintained an underweight rating on European stocks. However, she added that it is still 'too early' to change her stance.