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BlackRock gets defensive amid political upheaval in Europe

World's biggest asset manager considers Brexit the main threat to stability in EU markets

BlackRock has been pouring more money into defensive stocks in Europe, particularly healthcare and industrial companies, with the world’s largest asset manager predicting a continued period of significant political uncertainty for the region.

In a research note to investors, the asset manager said a deterioration in risk appetite in Europe, triggered by Brexit, had led to what it called “composition changes” within the market. This has caused defensive sectors to outperform, BlackRock said.

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