Emerging-market stocks rebound after seven days of declines as focus shifts to rate decisions

From BNN Bloomberg: 2024-07-23 12:14:04

Developing-nation stocks rebounded from their longest losing streak since August, with the MSCI index for emerging-market stocks rising after seven days of declines, led by a rebound in Asian technology stocks. Latin American currencies weakened against the dollar, with the Mexican peso falling 0.8%.

Central banks in developing economies made key decisions, with Turkey maintaining its interest-rate pause, Hungary continuing its easing cycle, and Nigeria raising its key interest rate to 26.75%. Analysts anticipate further easing in Hungary, while Nigeria requires more portfolio inflows for currency stabilization.

In the emerging markets, uncertainty and volatility persist, impacting Latin American FX performance. Central banks in developing economies are facing tough decisions amidst global economic challenges. Investors are closely monitoring policy decisions and their impact on local currencies and market stability. Analysts predict further rate cuts in Hungary, potentially influencing forint dynamics and inflation outcomes.

Read more at BNN Bloomberg: Emerging-Market Stocks Rebound as Focus Turns to Rate Decisions – BNN Bloomberg