EM assets set for weekly gains as investors weigh Fed hike, geopolitical tensions
EEM•Emerging-market stocks and currencies rose 0.1% and 0.3%, respectively, and were heading for weekly gains as investors weighed expectations of further Fed rate hikes and geopolitical tensions.
1. Weekly gains in view
Emerging-market assets were heading for weekly gains as investors balanced expectations of further Federal Reserve rate hikes and geopolitical tensions against economic data and central bank decisions across developing economies. MSCI’s emerging-market stock index rose 0.1%, while its currency index gained 0.3%.
2. Rates and regional moves
U.S. 30-year Treasury yields hovered near their highest since 2004, while oil eased 0.9% but remained near $105 a barrel. South African stocks hovered near a seven-week low as weaker gold prices weighed on sentiment, and Turkish stocks remained near six-month lows.
3. Geopolitical developments
U.S. and Iranian negotiators are exploring a phased path out of war that could reopen the Strait of Hormuz and lift Washington’s economic blockade of Iran, sources said. Weekly gains in South Korean and Taiwanese benchmarks offset weakness elsewhere in emerging-market stocks.
