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Bank stocks have more room to run: BlackRock

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Financials, the sector that has led the recent rally, still has more room to run, BlackRock strategists said Tuesday.

"I don't think we've seen the end to the bank stocks rally even though we've seen some consolidation in the near term," Kate Moore, chief equity strategist at BlackRock, said Tuesday at the firm's media presentation on the global investment outlook.

She cited several factors including a steepening yield curve — which improves banks' profit margins — "healthy balance sheets" and less regulatory pressure. In particular, Moore said, "this is a very constructive environment for regional banks."