Emerging-Market Rally May Hinge on Stimulus. Just Not Too Much
- Continued easing, growth stabilization key: AllianceBernstein
- Oil price shock impact on emerging markets seen contained
Rio de Janeiro, Brazil.
Photographer: Evgeny Makarov/BloombergThis article is for subscribers only.
Emerging markets will again be looking to central banks to provide the next leg-up in a rally that’s making it the best September so far for stocks and currencies since 2013.
That’s assuming there’s no conflagration between the U.S and China over trade, and no panic over the slump in Saudi Arabia’s oil production, though the oil’s record spike and weaker-than-expected economic data from China weighed on assets on Monday in Asia trading. The Federal Reserve and Bank of Japan decisions on Wednesday and Thursday will be key to sentiment, not forgetting interest-rate decisions in Brazil, South Africa and Indonesia.