International Finance: China reopening is mixed blessing for emerging-market assets

For stocks, it’s a boost as it promises to raise consumer demand, improve corporate cash flows and revive trade volumes. For currencies, however, it could be a drag by reducing real yields via inflation, pressuring China’s current account and delaying a policy pivot by the Federal Reserve. For bonds, it’s a mixed offering.

Developing-nation stocks and currencies have made the strongest start to a year since the 1990s, and bonds are posting the best gains in more than a decade, as investors who stayed on the sidelines during China’s pandemic struggles are coming back. GAMA Asset Management turned bullish on emerging markets last month. Fidelity International, which was bearish for most of the past year, is now overweight the assets, favouring China and Latin America.

Some analysts are going a step further and raising the spectre of stagflation — a period of high inflation coinciding with little growth. The concern that the Fed would cite inflationary pressures coming from China to stay hawkish also weighs on the outlook. For now, though, most investors are happy to ride the rebound and its spillover into emerging markets. Emerging-market stocks rose on Monday and the average sovereign risk premium narrowed 9 basis points to 453, according to JPMorgan data.

Россия Последние новости, Россия Последние новости

Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей

International Finance: Asian stocks climb; dollar edges lower, yen gains: markets wrapAsian shares started the week higher with a tailwind from US stocks closing at the highest in a month as easing inflation expectations fuel January’s global share rally. The dollar declined.
Источник: dailymaverick - 🏆 3. / 84 Прочитайте больше »

International Finance: Treasuries will leave Europe’s bonds in the dust, investors sayThe inflation fight in Europe will drag for so long that it will tarnish the appeal of the region’s debt this year, a survey of investors shows.
Источник: dailymaverick - 🏆 3. / 84 Прочитайте больше »

International Finance: European stocks rise as US futures signal caution: markets wrapA gauge of global equities faltered after its best start to a year in a generation as investors assessed whether the rally had gone too far given the outlook for inflation, growth and earnings. European stocks rose.
Источник: dailymaverick - 🏆 3. / 84 Прочитайте больше »

International Finance: Davos 2023: geopolitics gets realIf there was an underlying theme to Davos 2020, it was the environment and Swedish activist Greta Thunburg was its star. If there was an underlying theme to Davos 2022, it was the Ukraine conflict and its consequences, with Ukrainian President Volodymyr Zelensky being its star. If there is to be an underlying theme to Davos 2023, my guess is that it will shape up to be the process of dealing with geopolitics and their consequences, and its star (or villain) will be the ghost of conference non-attendee Vladimir Putin. That's why Cyril didn't go.
Источник: dailymaverick - 🏆 3. / 84 Прочитайте больше »

THE FINANCE GHOST: A crash course in crashes2022’s market wringer was anything but fun for just about everyone. But its lessons were many and invaluable — and will make you a better investor, writes FinanceGhost.
Источник: FinancialMail - 🏆 20. / 63 Прочитайте больше »

PHANTOM SHARES: The Finance Ghost — Why is Steinhoff still trading at all?If you can imagine a MyCiTi bus on fire in a Cape Town protest, buying Steinhoff shares at this point is like buying a ticket to ride on that bus. Wasnt steinhof 27c fairly recently? - an almost 100% rise then for those selling now, outstripping most blue chip shares' performance
Источник: dailymaverick - 🏆 3. / 84 Прочитайте больше »