Emerging Stocks Halt Four-Day Slide as South African Rand Gains

  • Developed nation equities little changed after terror attacks
  • Ruble, Colombian peso rise with price of Brent crude oil

China's Bond Rout Triggers Market Turmoil

Emerging-market equities halted a four-day slide, joining global financial markets in showing resiliency after recent geopolitical shocks. The South African rand and Russian ruble led gains in developing-nation currencies amid a rise in crude oil.

The MSCI Emerging Market Index erased a loss of 0.3 percent to finish little changed, while a basket of currencies rose 0.1 percent. Assets in developing nations stanched a series of declines sparked by speculation U.S. interest rates will rise faster than previously expected as President-Elect Donald Trump seeks to increase public spending.

Markets around the world quickly looked past the assassination of Russia’s envoy to Turkey and a probable terrorist attack in Berlin on Monday, with risk-on rallies resuming amid thin trading leading up to the holiday period.

  • Demand for haven assets briefly rose following yesterday’s attacks, only to fade Tuesday; click here for more on the incident in Berlin, and here for the shooting in Ankara.
  • Emerging equities rose less than 0.1 percent after four days of losses. Most Latin American stock indexes were little changed.
  • The MSCI Emerging Markets Currency Index fell 0.1 percent after halting a three-day slide on Monday.
  • Turkey’s lira gained 0.1 percent. The central bank kept interest rates unchanged to support the economy, going against the expectation of economists surveyed by Bloomberg for a 25 basis point increase to the overnight lending rate
  • Egypt’s EGX 30 Index jumped 3.4 percent, pushing its gain in 2016 to 73 percent; Egyptian pound slumps 2.8 percent to record 19.36 per dollar
  • South African rand and Russian ruble strengthened as Brent crude gained. The majority of economists surveyed by Bloomberg say Trump will ease sanctions against Russia next year.

Research

  • The biggest concerns in 2017 for investors in investment-grade assets are “populism in politics” and rising yields, while their non-investment grade counterparts are worried about asset bubbles and geopolitical conflict, Bank of America Merrill Lynch says in a survey-based report
Before it's here, it's on the Bloomberg Terminal.
LEARN MORE