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BRIEF-BlackRock's strategist Richard Turnill says fears of U.S. deflation have faded
December 12, 2016 / 3:39 PM / 9 months ago

BRIEF-BlackRock's strategist Richard Turnill says fears of U.S. deflation have faded

Dec 12 (Reuters) - BlackRock’s strategist Richard Turnill:

* Says fears of deflation, dominant earlier in the year when oil prices plunged, have faded in the U.S.

* Downgraded U.S. Treasuries, upgraded outlook for Japanese stocks, and have moved neutral on European credit (from overweight)

* “Inflation expectations are rising due to pick-ups in wages and growth, as well as likely fiscal stimulus”

* Since higher growth, inflation can benefit emerging market growth without hitting currency values, EM assets holding up better

* We expect treasury inflation protected securities (TIPS) market pricing to keep edging up, which is why we favor TIPS Further company coverage:

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