Emerging Markets Grapple With Low Volatility Amid Rate-Cut Pause
- Pinebridge spends more time reviewing economic fundamentals
- South Africa, Indonesia and Hungary seen keeping rates steady
People protest against the government in Santiago on Nov. 16.
Photographer: Johan Ordonez/AFP via Getty Images
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With little more than six weeks to the end of 2019, the signs are that the worst days of the year for emerging markets are in the past. But don’t bet on any major rally either.
Expected volatility is close to its lowest levels since 2014, stocks are failing to take their cue from bullish signals and a trio of central banks are poised to back away from stimulus-inducing rate cuts this week. That leaves markets largely hostage to the ups and downs of the trade talks, with the latest phone call between U.S. and Chinese officials on Saturday likely to trigger at least a bout of optimism at the start of the week.