Emerging market stocks extended gains for a fifth straight session on Thursday, while central and eastern European currencies eased amid central bank disappointments and energy concerns.
A wobbly dollar helped Asian stocks gain, and optimism spread outside the region as well. Turkish, South African and Polish stocks rose more than 1% each. The MSCI Emerging Markets Equity Index gained 0.3%, after rising more than 4% in a week. But the index is still down 26% for the year.
Emerging market stocks and currencies have fallen nearly 8% so far in 2022 as aggressive central bank tightening to rein in soaring inflation sparked concerns of a recession, prompting a leak to the safe-haven US dollar and increasing Treasury yields. Arthur Budaghyan, chief emerging markets strategist at BCA Research, which has been underweight emerging markets for the past 12 years, has a more positive view.
“We are in the very final stages of this underweight call,” he said. “We will soon be entering a regime where the relative trajectory of emerging market versus developed market stock prices shifts from a bear market to a broad trading range.” But the dollar tried to regain momentum ahead of Friday’s U.S. jobs data, paring gains on other currencies. .
Central bank intervention via U.S. dollar sales will not bolster emerging market currencies, a Reuters poll has found, and nothing can be done to bolster emerging market currencies over the next six months, some have said. strategists. The South African rand tumbled 0.3%, to extend losses to a second session after the central bank warned that power outages would shave around a percentage point off economic growth in the country’s most industrialized nation. ‘Africa.
The Turkish lira, down 28% this year, rose 0.8%. In Central and Eastern Europe, the Hungarian forint fell 0.5% to 423.16 against the euro after data showed retail sales slowed in August.
The currency has lost almost 13% this year amid energy supply concerns due to the Russian-Ukrainian war and soaring prices. While it is expected to rebound from record lows hit in September on European Union fund hopes, it should struggle over the next year to break above the psychological level of 400 per euro, according to a Reuters poll. . The Polish zloty fell 0.5% on track for its biggest drop in a week, and extended losses after the central bank held the key interest rate steady on Wednesday against expectations of a hike by 25 basis points, as it warned of an economic slowdown in the next month. For 2022 Emerging Markets FX performance chart see http://tmsnrt.rs/2egbfVh For 2022 MSCI Emerging Market Index performance chart see https://tmsnrt.rs/2egbfVh
For TOP NEWS on emerging markets For the CENTRAL EUROPE market report, see
For the TURKISH market report, see For the RUSSIAN market report, see
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)
Emerging market stocks extended gains for a fifth straight session on Thursday, while central and eastern European currencies eased amid central bank disappointments and energy concerns.
A wobbly dollar helped Asian stocks gain, and optimism spread outside the region as well. Turkish, South African and Polish stocks rose more than 1% each. The MSCI Emerging Markets Equity Index gained 0.3%, after rising more than 4% in a week. But the index is still down 26% for the year.
Emerging market stocks and currencies have fallen nearly 8% so far in 2022 as aggressive central bank tightening to rein in soaring inflation sparked concerns of a recession, prompting a leak to the safe-haven US dollar and increasing Treasury yields. Arthur Budaghyan, chief emerging markets strategist at BCA Research, which has been underweight emerging markets for the past 12 years, has a more positive view.
“We are in the very final stages of this underweight call,” he said. “We will soon be entering a regime where the relative trajectory of emerging market versus developed market stock prices shifts from a bear market to a broad trading range.” But the dollar tried to regain momentum ahead of Friday’s U.S. jobs data, paring gains on other currencies. .
Central bank intervention via U.S. dollar sales will not bolster emerging market currencies, a Reuters poll has found, and nothing can be done to bolster emerging market currencies over the next six months, some have said. strategists. The South African rand tumbled 0.3%, to extend losses to a second session after the central bank warned that power outages would shave around a percentage point off economic growth in the country’s most industrialized nation. ‘Africa.
The Turkish lira, down 28% this year, rose 0.8%. In Central and Eastern Europe, the Hungarian forint fell 0.5% to 423.16 against the euro after data showed retail sales slowed in August.
The currency has lost almost 13% this year amid energy supply concerns due to the Russian-Ukrainian war and soaring prices. While it is expected to rebound from record lows hit in September on European Union fund hopes, it should struggle over the next year to break above the psychological level of 400 per euro, according to a Reuters poll. . The Polish zloty fell 0.5% on track for its biggest drop in a week, and extended losses after the central bank held the key interest rate steady on Wednesday against expectations of a hike by 25 basis points, as it warned of an economic slowdown in the next month. For 2022 Emerging Markets FX performance chart see http://tmsnrt.rs/2egbfVh For 2022 MSCI Emerging Market Index performance chart see https://tmsnrt.rs/2egbfVh
For TOP NEWS on emerging markets For the CENTRAL EUROPE market report, see
For the TURKISH market report, see For the RUSSIAN market report, see
(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)
