Reuters logo
4 months ago
EMERGING MARKETS-Emerging markets wobble as geopolitics renew bid for dollar
April 19, 2017 / 9:49 AM / 4 months ago

EMERGING MARKETS-Emerging markets wobble as geopolitics renew bid for dollar

    By Karin Strohecker
    LONDON, April 19 (Reuters) - Emerging market struggled on
Wednesday after Britain's surprise snap election call added to
political uncertainties globally, from France's nail-biting
election race to tensions on the Korean peninsular, that have
dampened risk appetite.
    Stocks fell to a one-week low in a second day of losses,
while many currencies weakened against a firmer dollar. 
    MSCI's emerging equity benchmark index           fell 0.3
percent, dragged down by Asian heavyweight Taiwan        
falling more than 1 percent while South Korea's bourse        
slipped 0.5 percent. That offset gains in Turkey         , South
Africa          and emerging Europe                .
    The dollar's gains against a basket of currencies        and
a renewed bid for safe-haven bonds added to pressure on many
emerging currencies.
    "We have had a period of low volatility so it would be
unsurprising if we enter a period of higher volatility -
especially as we have European elections and geopolitical risks
around the world so we may see emerging market currencies
correct from time to time," said Cristian Maggio, head of
emerging markets strategy at TD Securities.
    "The emerging market rally can extend further, but it won't
be linear," he said, noting that the fundamental global growth
picture was still benign.
    South Africa's rand        traded 0.5 percent weaker against
the dollar after having rallied almost 5 percent since early
last week. Investors are increasingly sceptical that a mooted
no-confidence vote in President Jacob Zuma will be successful.
    "I don't think this is going to happen and we are seeing the
rand quite strong compared to where it should be," Maggio said,
adding the rand should be closer to 14 than 13 per dollar.
    Meanwhile the country's new Finance Minister Malusi Gigaba
ruled out a radical policy changes, while latest data showed
headline consumer inflation slowed more than expected in March.
                         
    Turkey's lira        and Mexico's peso        both weakened
0.3 percent, but Russia's rouble        strengthened 0.2
percent, in line with a rise in crude oil prices        .
        
For GRAPHIC on emerging market FX performance 2017, see tmsnrt.rs/2e7eoml

For GRAPHIC on MSCI emerging index performance 2017, see tmsnrt.rs/2dZbdP5
            
 Emerging Markets Prices from Reuters            
 Equities                  Latest    Net Chg  % Chg  % Chg      
     
                                                     on year    
       
 Morgan Stanley               
 Emrg Mkt Indx              954.66    -3.04   -0.32  +10.71     
       
 Czech Rep                  970.18    +2.12   +0.22   +5.27     
       
 Poland                    2251.71   +14.35   +0.64  +15.60     
       
 Hungary                  32689.21  +167.63   +0.52   +2.14     
       
 Romania                   8195.59   -37.06   -0.45  +15.67     
       
 Greece                     676.40    -0.90   -0.13   +5.09     
       
 Russia                    1081.01    +3.80   +0.35   -6.19     
       
 South Africa             46050.97  +177.75   +0.39   +4.89     
       
 Turkey                   91666.46  +292.68   +0.32  +17.31     
       
 China                     3171.31   -25.41   -0.79   +2.18     
       
 India                    29315.44    -3.66   -0.01  +10.10     
       
            
 Currencies              Latest    Prev    Local    Local       
      
                                   close   currency currency    
       
                                           % change % change    
       
                                                    in 2017     
      
 Czech Rep                26.80     26.78   -0.06    +0.78      
     
 Poland                    4.24      4.23   -0.19    +3.86      
     
 Hungary                 312.88    313.25   +0.12    -1.30      
     
 Romania                   4.53      4.52   -0.05    +0.22      
     
 Serbia                  123.53    123.51   -0.02    -0.15      
     
 Russia                   56.14     56.24   +0.18    +9.12      
     
 Kazakhstan              311.36    311.41   +0.02    +7.16      
     
 Ukraine                  26.77     26.82   +0.19    +0.86      
     
 South Africa             13.36     13.26   -0.74    +2.79      
     
 Kenya                   103.30    103.30   +0.00    -0.90      
     
 Israel                    3.67      3.66   -0.24    +4.88      
     
 Turkey                    3.67      3.66   -0.23    -3.86      
     
 China                     6.89      6.88   -0.13    +0.82      
     
 India                    64.58     64.59   +0.02    +5.21      
     
 Brazil                    3.11      3.11   +0.01    +4.71      
     
 Mexico                   18.62     18.59   -0.15   +11.25      
     
            
 Debt                 Index   Strip Spd  Chg   %Rtn   Index     
       
 Sov'gn Debt          EMBIG   335        -3    .05  7 77.35 1   
        
            
 All data taken from Reuters at 08:37 GMT. Currency percent
change calculated from the daily U.S. close at 2130 GMT.        
  
    For CENTRAL EUROPE market report, see       
    For TURKISH market report, see      
    For RUSSIAN market report, see         )

 (Additional reporting by Sujata Rao; editing by Richard Lough)
  

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below