Emerging markets stocks and FX tread water; Romania politics in focus
EEM•Emerging market stocks and currencies held steady on Tuesday as increased Middle East oil exports eased supply concerns. Romanian equities rose after Luca Niculescu was nominated prime minister, while the World Bank raised its South Asia growth forecast to 6.9%.
1. Romania in focus
Romanian equities rose after President nominated former diplomat and journalist Luca Niculescu as prime minister, the fourth nominee in five months. He has 10 days to form a cabinet and secure a parliamentary confidence vote. The BETI index gained as much as 2%, while the leu edged lower.
2. Regional markets steady
Emerging market equities edged 0.1% higher and the currencies index was steady. Hungarian equities gained 1.3% and the forint firmed 0.5% after central bank Deputy Governor Zoltan Kurali said Hungary should not delay joining ERM-2 if markets view its euro adoption roadmap as credible.
3. Debt and growth risks
Senegal was due to discuss its debt plan with creditors and the IMF; its international bonds were marginally higher. The World Bank raised its South Asia growth forecast by 60 basis points to 6.9% this year, citing resilient consumer demand, while warning of risks from persistently high oil prices and severe weather.
