Emerging Market |

Nigeria Misses Out on Emerging-Market Rally as Vote Nears

LAGOS (Capital Markets in Africa)- Emerging-market assets may be enjoying a strong start to the year, but one country missing out on the rally is Nigeria. With investors fretting about tight elections just a month away, low oil prices and escalating violence, there’s little to suggest there’ll be an immediate turnaround. The main stock index in Lagos, the commercial capital, has lost 4.1 percent since the end of 2018, which is the biggest drop globally after Serbia, Romania and Bulgaria,…

Weak Links in Emerging Markets Show Where Selloff May Start

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – There’s probably just one headline that could end the party in emerging markets, and it’s likely to come from the Federal Reserve. If a rebound in U.S. inflation prompts the central bank to chip away at its wall of money sooner and faster than expected, then the rally that boosted returns in developing-nation stocks, bonds and currencies since January 2016 will be under threat. While money managers don’t see…

Wall Street Braces for Emerging-Market Jolt by Dodging Dollar

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – After two years of almost uninterrupted gains in developing-nation currencies against the U.S. dollar, it’s time for a new strategy. That’s the assessment of traders who’ve grown anxious that the greenback’s 16 percent slide against a basket of emerging-market currencies since January 2016 has gone too far. The latest inflation reading in the world’s largest economy added to concern, possibly giving the Federal Reserve cover to tighten monetary policy. At the same time,…

Emerging-Market Bulls Are Cooling Off After Impressive Rally

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa)- After a surprisingly good run in emerging markets that sent equities to a fifth monthly gain, some bulls are easing up. Credit Suisse Group AG forecasts developing-nation equities will underperform in the short term, while Deutsche Bank Wealth Management said it’s not as positive on emerging-market bonds as a year ago. Goldman Sachs Group Inc.said strong returns have partially eroded a previously compelling valuation signal, and BNP Paribas SA said the best gains in…

Emerging-Market Currencies Climb as Lira Rebounds From Lows

Posted on by The Editorial Team

LAGOS (Capital Markets in Africa) – Emerging-market currencies rose the most in 10 months as the Turkish lira’s rebounded from record lows on speculation the central bank will take steps to support it. The MSCI Emerging Market Currency Index surged by the strongest pace since March and a similar gauge of stocks is on track to erase losses recorded after Donald Trump’s election in November. The U.S. President-elect news conference on Wednesday failed to support fiscal expansion…