© Reuters.
Emerging-market stocks experienced a slight dip of 0.2% in Europe today, as a slowdown in Chinese industrial-profit growth sparked renewed economic worries. This setback comes despite a recent surge in optimism surrounding potential policy shifts by the Federal Reserve.
The had previously seen a significant boost, with stocks climbing by $1.7 trillion in value since late October. Additionally, the average sovereign bond yields across emerging markets had fallen by 84 basis points.
Investor confidence in emerging markets has been on the rise, as highlighted by the inflow of $2.1 billion into BlackRock Inc (NYSE:).’s ETF over seven weeks of consecutive net deposits. The Turkish banking sector also received a boost, with stock prices jumping following buy recommendations from Bank of America Corp (NYSE:). This reflects a positive reaction to Turkey’s adherence to orthodox monetary policy.
Furthermore, emerging-market bond funds saw a reversal of recent trends with an influx of $20 million in the week ending November 21, ending a period of consistent outflows. This influx indicates a renewed investor appetite for emerging-market debt, suggesting a more favorable outlook for these economies.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Read the full article here
