Business & Investment

EM-Stocks rise on strong Wall Street, but pandemic concerns continue

Emerging market stocks continue to take over from Wall Street overnight, aiming to grow profits in three consecutive sessions on Wednesday, with the developing market currency index rising to a one-month peak. did.

Increasing cases of coronavirus delta mutants continued to suppress emotions, with China and Turkey reporting a surge in cases within the country.

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After the S & P 500 hit a record high, MSCI’s Emerging Markets (EM) Equity Index surged 1% due to a rise in Chinese and Hong Kong equities following recent volatility, but Turkey, South Africa, Russia, Poland and Hungary. All shares are 0.3% to 0.7%.

Russia’s benchmarks are about 2.5% off record highs, but the broader EM index is on track to recoup last week’s losses caused by China’s crackdown on some business units. ..

“The cases of Rising Delta Variant Covid-19 have not yet weakened market expectations, but they were easily possible,” said Robert Kernel, Head of Asia Pacific Research at ING. ..

“The return of Covid to China is our primary concern. Aggressive measures should put it under control-the question is how fast and what the economic costs are.”

Economists said China, the world’s second-largest economy, may need more monetary and fiscal easing to stop the economic slowdown. Data on Wednesday showed that growth in China’s services sector accelerated in July, but the pandemic could weaken momentum.

The index surged 0.3% as the EM currency rebounded against the calm dollar.

The South African rand hit a three-week high, but the Russian ruble approached a more than a month high, expanding to eight consecutive sessions, the longest consecutive win since February. According to data, Russia’s service PMI expanded in July, but at the slowest pace since February.

The market was waiting for details of Russia’s foreign currency purchases last month and two auctions of OFZ government bonds.

Lira fell below nearly two-month highs on Tuesday as the number of daily coronavirus infections in Turkey surged to nearly 25,000, peaking in almost three months.

Belarusian Ruble lost 0.2% and became the worst session in four weeks due to heavy political tensions. A wave of protests was triggered by last year’s elections, where opposition parties said they had cheated to maintain President Alexander Lukashenko’s power. Since then, Western nations have imposed sanctions on their nations.

Hungarian forints approached a four-week high against the euro, boosted by rising retail sales data in June.

EM-Stocks rise on strong Wall Street, but pandemic concerns continue

https://www.moneyweb.co.za/news/economy/em-stocks-rise-on-strong-wall-street-but-pandemic-worries-persist/ EM-Stocks rise on strong Wall Street, but pandemic concerns continue

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