Emerging markets enjoy trillion-dollar week as USD slips

  • 📰 BusinessTimes
  • ⏱ Reading Time:
  • 66 sec. here
  • 3 min. at publisher
  • 📊 Qulity Score:
  • News: 30%
  • Publisher: 51%

[NEW YORK] The US dollar's bearish turn has opened the floodgates into emerging markets, helping currencies to get on board a rally so far driven by equities and bonds. Read more at The Business Times.

Singapore Headlines News

Singapore Latest News, Singapore Headlines

In January 2016, on the heels of the Federal Reserve's first rate increase in almost a decade, emerging-market equities began a tentative advance. It was not until March that currencies joined the rally, but once they did, the trend snowballed and gains continued until January 2018. Stocks alone added US$8 trillion.

This week, investors got a glimpse of that all-round performance. Emerging-market stocks added US$800 billion in the first four days of the week, while bond benchmarks added US$40 billion. Exchange-traded-fund flows have turned positive. Added to all this, Friday's gains for stocks, bonds and currencies will probably take weekly net flows above US$1 trillion.

The Brazilian real posted the best performance of 24 emerging-market currencies tracked by Bloomberg, up 7.6 per cent in the week. The Indonesian rupiah climbed more than 5 per cent. The Chilean peso appreciated 4.9 per cent. The MSCI Emerging Markets Currency Index rose above the 38.2 per cent Fibonacci retracement from the March rout. If the gauge consolidates above that threshold, it may post further gains. Meanwhile, options traders have cut expectations for volatility in currencies for a sixth successive week, the longest streak since February 2017. Cumulative carry-trade gains have risen for a third week.

"The focus is on the future, and this is where markets are expecting things to start improving," said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group in Singapore.For daily updates on weekdays and specially selected content for the weekend. Subscribe to

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 15. in SG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Coronavirus: Barber shops, night markets in Malaysia allowed to reopen from next weekPUTRAJAYA (THE STAR/ASIA NEWS NETWORK) - Barber shops, hairdressing salons and beauty parlours in Malaysia can resume operations on Wednesday (June 10), said senior minister Ismail Sabri Yaakob.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »

China May exports slip back into contraction, imports worst in 4 years[BEIJING] China's exports contracted in May as global coronavirus lockdowns continued to devastate demand, while a sharper-than-expected fall in imports pointed to mounting pressure on the country's manufacturers as global growth stalls. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »

Tech drives Nasdaq to all-time high as signs of recovery emerge from coronavirus pandemicThe heavyweight technology and growth stocks that drove Wall Street higher in recent years are again fueling a surge that has taken the Nasdaq ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Rare turtle lays eggs on tourist-free Thai beachA critically endangered turtle emerged from the sea to lay at least 80 eggs on a Thai beach just minutes before the start of World Environment Day ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

G20 pledges more than US$21 billion to fight coronavirusCAIRO: The Group of 20 rich and emerging economies has pledged more than US$21 billion to fight the coronavirus, the group said early on Saturday ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »

Facebook's Mark Zuckerberg, Apple's Tim Cook donate millions to fight racismWith the US reeling from social unrest, big tech CEOs are promising millions of dollars to support civil rights groups. Who are racist if one even refuse to recognise their own race!
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »