EM equities pressured by elevated oil, FX stable
EEM•Emerging-market stocks fell 0.4% to an 11-day low as higher oil prices and bond yields weighed on sentiment, while emerging-market currencies edged up 0.1%. Brent crude remained above $100 a barrel, and the Indonesian rupiah breached 18,000 per U.S. dollar.
1. Stocks fall across markets
Emerging-market stocks slipped 0.39% to an 11-day low on Tuesday as rising bond yields and higher oil prices weighed on sentiment. Turkey’s BIST 100 fell 1% to its lowest level since January, while Romania’s benchmark index dropped 1.8%; Polish and Hungarian stocks each fell 0.1%.
2. Oil and rates pressure
Brent crude retreated slightly but remained above $100 per barrel. Treasury yields stayed above 5% for both 10-year and 30-year bonds, as expectations of higher-for-longer Federal Reserve rates and signs of continued U.S. economic resilience pushed yields higher in recent weeks.
3. Currencies mixed
Emerging-market currencies edged 0.12% higher overall against a firmer U.S. dollar, though regional currencies were mixed. The Indonesian rupiah breached 18,000 per U.S. dollar for the first time in nearly two months, while the Hungarian forint fell 0.7% against the euro.
