EM-battered stocks inch up; rand falls on power cuts, growth fears

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Emerging market stocks and currencies hovered just above their lowest level in almost two years on Monday as dire Chinese economic data renewed concerns around global growth, while the SouthAfrican rand came under pressure from domestic power cuts.

Emerging market stocks and currencies hovered just above their lowest level in almost two years on Monday as dire Chinese economic data renewed concerns around global growth, while the South African rand came under pressure from domestic power cuts. The MSCI index for emerging market equities inched 0.2% higher, still down 6.5% on the month and nearly 20% on the year, while currencies were little changed against a strong greenback after a sixth straight weekly decline last week.

1% on the year, almost twice the drop forecast, while industrial output fell 2.9%. South Africa’s rand fell 0.4% as domestic power cuts, weaker gold prices and a blurry growth outlook weighed on the currency. Investor focus was on a monetary policy decision expected on Thursday where the central bank is likely to make its first 50 basis point repo rate hike in more than six years. The Czech crown inched 0.3% higher after hitting two-month lows last week.

 

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