First three weeks of the year can be an emerging-market red herring

  • 📰 BusinessTimes
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 51%

United States News News

United States United States Latest News,United States United States Headlines

“This year, the MSCI Emerging Markets Index entered bull market after it crossed key technical thresholds in the middle of last month, buoyed by the prospect of a preliminary trade deal between the US and China.”

In 1999, the MSCI gauge made a faltering start after the missteps of the previous year, including a debt default in Russia and a government collapse in Turkey. But the year ended up with a runaway rally as the dotcom boom peaked.

In 2000, the opposite occurred. Stocks kept advancing into the New Year, but a sell-off in late January was an omen of the dotcom bust that really began in April.A massive rebound of 11 per cent in the first three weeks fizzled as the US economy contracted.Even though the Federal Reserve had taken its benchmark interest rates close to zero in December 2008 and unleashed its first quantitative easing, the pessimism surrounding the financial crisis lingered well into January.

Truth be told, early January trading hasn't always been a dud. It correctly predicted full-year moves on the following occasions:

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 15. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US stocks finish first session of 2020 at recordsNEW YORK: Wall Street stocks ended at fresh records on Thursday (Jan 2), a buoyant start to the 2020 trading campaign that extended the late-2019 ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »