In the News

Emerging Stocks Dip With Global Equity Markets: Inside EM

(Bloomberg) -- Emerging-market currencies rose after the People’s Bank of China moved to halt a steep drop in the yuan.

Equities across the developing world ended the session lower in tandem with global share markets, fading a rally that drove the S&P 500 to multiple records, in a session of rising US yields.

  • MSCI’s EM currency index gained 0.1%, led by the South African rand and the Polish zloty; stocks dropped 0.3%
    • “Stability in China FX can have ripple effects and I think that’s been on display in the last few trading days,” said Brendan McKenna, an emerging-markets economist at Wells Fargo
  • All Latin American currencies gained on the back of news from China and commodity gains
  • The forint rebounded slightly against euro after the government in Budapest affirmed it’s delaying a controversial change to the central bank law; central European peers the zloty and koruna also appreciated
  • Senegal’s sovereign dollar bonds rallied, posting some of the best gains in emerging markets, as investors bet the recent election would lead to the western African country getting a stable government and Bassirou Diomaye Faye toning down some of the extreme policy measures he had outlined during the campaign
  • Zambia has agreed to restructure $3 billion in eurobonds, clearing a key hurdle that’s delayed its three-year effort to escape debt default with implications for other nations seeking creditor deals
  • Investors will be on the lookout for the personal consumption expenditures price index — due on Good Friday — as well as Brazil’s central bank minutes due Tuesday before the market open
    • “Moves by various central banks mixing it up with hawkish cuts and dovish hikes makes one thing clear: the future is quite uncertain,” said Juan Pérez, director of trading at Monex USA

Reporting By Andras Gergely and Leda Alvim

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