Emerging Markets

  • Mostly easing talk from EM central banks, except for Brazil.

    A Preview of this Week's Events Among the Emerging Markets

    Waning risk appetite along with growing uncertainty in Europe about Greece have set up emerging markets for a difficult week. In addition, the wave of monetary policy easing and expectations for further easing by EM central banks has removed another buffer against further currency depreciation. This will become especially important if the trend of dollar appreciation continues – which we expect to happen, even if not immediately. 

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  • Hungary, Turkey and Pakistan lead Emerging Market news.

    An Emerging Markets Status Update

    Over the last week, Qatar (+3.1%), Czech Republic (+1.8%), and Poland (+1.5%) have outperformed in the EM equity space as measured by MSCI, while Russia (-10.9%), Brazil (-6.4%), and UAE (-5.8%) have underperformed. To put this in better context, MSCI EM fell -3.0% over the past week while MSCI DM fell -1.2%.

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  • Many Emerging Market currencies appreciated last week.

    A Preview of the Emerging Markets

    Emerging markets seem to be on a slightly better footing after a few turbulent weeks. Many EM currencies were able to appreciate against the dollar in the wake of the ECB’s QE announcement, despite most major currencies depreciating. Meanwhile, EM fixed income markets were able to benefit from the trend lower in yields and equity markets were buoyed by the global rally and the stabilization in energy markets. We doubt that weakness in EM is entirely behind us, but it appears as if we are entering into a stage of greater differentiation.

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  • Surprising Central Bank rate decisions pepper the Emerging Markets news.

    Emerging Markets Status Update: Central Bank Surprises

    Over the last week, Hungary (+8.8%), Russia (+7.2%), and Chile (+5.7%) have outperformed in the EM equity space as measured by MSCI, while the Philippines (-0.9%), Czech Republic (-0.6%), and UAE (-0.1%) have underperformed.  To put this in better context, MSCI EM rose 3.6% over the past week while MSCI DM rose 2.2%.

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  • A preview of the Emerging Markets

    A Preview of this Week's Events Among the Emerging Markets

    After an eventful few sessions, EM assets this week will be wedged between a US holiday on Monday and expectations ahead of the ECB meeting on Thursday. Bar any unexpected developments, we doubt there will be a lot of conviction for trades in the near term.

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  • Kenya's vibrant economy poised for growth in 2015.

    Falling global oil prices sparking Kenya’s economy to a vibrant growth

    Global oil prices are experiencing a free fall with the ultimate bottom resistance point predicted at $40 per barrel. Increased supply from all leading world oil producers is termed to be the core reason why we are experiencing the downward slide of the “black gold” prices. The ripple effect this has on the global economy has been accurately predicted to be a fall in fuel prices; which then leaves millions of consumers with additional savings to spend.

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  • The Emerging Markets status update

    An Emerging Markets Status Update

    Over the last week, Egypt (+6.4%), UAE (+3.4%), and Hong Kong (+3.2%) have outperformed in the EM equity space as measured by MSCI, while Peru (-6.3%), Russia (-4.8%), and Colombia (-4.4%) have underperformed.  To put this in better context, MSCI EM rose 0.5% over the past week while MSCI DM fell -1.3%.

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  • A preview of the Emerging Markets

    A Preview of this Week's Events Among the Emerging Markets

    EM is starting the week facing several familiar cross-currents.  The dollar is strengthening again, oil prices are still falling, but equities are moving higher.  This constellation seems to suggest a continuation of our call further weakness in EM, but for Asian assets to outperform in the short-term. 

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  • Impact investing in Africa can fuel sustainable development

    Fueling sustainable development in Africa through Impact Investing

    The impact investing space is growing in Africa and could be the trigger this developing continent needs for faster sustainable development. As the MDGs are being replaced by the SDGs in 2015, new development concepts and policies are being floated for Africa to adopt. Impact investing could be one of the best strategies if embraced and well implemented across the continent.

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  • Emerging Markets - where are they now?

    Emerging Markets Status Update

    Over the last week, Russia (+10%), China (+1.7%), and the Philippines (+0.3%) have outperformed in the EM equity space as measured by MSCI, while Colombia (-7.0%), Hungary (-6.7%), and Czech Republic (-5.4%) have underperformed.  To put this in better context, MSCI EM rose 0.2% over the past week while MSCI DM fell -1.4%.

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