Emerging market stocks rise as oil prices ease; focus on upcoming IMF meetings
EEM•Emerging-market stocks rose 0.5% on Friday as oil prices fell about 1% and concerns over a near-term flare-up in U.S.-Iranian fighting eased. Currencies were little changed, while investors remained cautious about elevated oil prices and government bond yields.
1. Stocks edge higher
Emerging-market stocks rose on Friday, though the index remained on track for a modest weekly loss after earlier declines. A gauge of emerging-market currencies was little changed and headed for a small weekly gain against the dollar.
2. Fiscal pressures remain
Kenya expects its budget deficit to widen to 5.9% of GDP in 2027/28, from 5.5% in 2026/27, and projected net external financing to rise about 71% to 423.8 billion shillings. Higher oil prices have increased borrowing costs and pressure on public finances, particularly in heavily indebted economies.
3. Regional policy developments
Hungary plans to expand renewable energy to reduce import dependence and electricity costs. Poland central banker Ludwik Kotecki said a 25-basis-point rate increase in November would be necessary if updated inflation forecasts point to persistent price pressure into late 2027 or early 2028. Turkey plans to submit draft legislation governing investment fund liquidation to parliament within days.
