EM stocks set for quarterly losses; Turkey selloff deepens
EEM•Emerging-market stocks rose 0.1% on Wednesday but were headed for quarterly losses, while Turkish equities fell 0.8% and were down nearly 15% for the month. The emerging-market currency index also rose 0.1%.
1. Turkey stocks slide
Turkey’s BIST 100 fell 0.8% on Wednesday and has shed nearly 15% this month, its steepest monthly decline since March 2020. The selloff followed an investigation into alleged market manipulation involving investment funds; authorities set up greater oversight on Tuesday to restore investor confidence.
2. Regional markets diverge
MSCI’s emerging-market stock index rose 0.1% but was heading for quarterly losses, while its currency equivalent also edged 0.1% higher. Poland’s inflation accelerated beyond the government’s upper limit in September, raising pressure on the central bank to consider tightening monetary policy.
3. Investors await US data
Investors were watching for US Personal Consumption Expenditures price index data due later Wednesday for clues on the interest-rate outlook. Elevated US Treasury yields and higher oil prices have pressured emerging-market assets in recent days.
