Left Menu
Development News Edition

EMERGING MARKETS-EM stocks firm on Sino-U.S. trade truce; Turkish equities hit record high

Reuters | Updated: 16-01-2020 14:55 IST | Created: 16-01-2020 14:46 IST
EMERGING MARKETS-EM stocks firm on Sino-U.S. trade truce; Turkish equities hit record high
Representative Image Image Credit: ANI

Emerging market stocks climbed on Thursday after China committed to boosting purchases of U.S. goods and services in an initial trade deal signed on Wednesday, while Turkish equities hit a record high ahead of a central bank meeting later in the day. An index of emerging market stocks rose about 0.2%, as the world's top two economies finally inked the deal, first announced last month, to defuse their prolonged tariff war that has hurt business sentiment and dented global growth.

But caution over how long the trade truce would last kept gains in check, with Chinese shares ending Thursday's session down about half a percent. Data showing China's December new home prices growing at their weakest pace in 17 months also hurt sentiment. Other assets in the developing world benefited from an increase in risk appetite, as investors counted on no further escalation between Washington and Beijing as they enter the next phase of negotiations to resolve structural economic issues.

"We believe the agreement underpins a positive outlook for risk assets, especially emerging market stocks," said Mark Haefele, chief investment officer at UBS Global Wealth Management. "But it is also important for investors to understand the limitations of the deal; we see the deal as representing a partial calming rather than an end to trade tensions."

Turkey's stock index rose over 1% to an all-time high ahead of a central bank meeting, where it will announce its policy rate following an aggressive easing cycle last year to support a flagging economy. A Reuters poll found economists were split between those predicting another rate cut and those who see no change at all after the central bank halved its policy rate in 2019.

The Turkish lira, however, eased 0.2% as another survey predicted the economy would grow just 3% this year and next, well shy of a government forecast. The currency is still trying to recover from a crisis in 2018 in which it lost nearly 30% of its value. Russia's rouble fell about 0.3%, a day after the surprise resignation of the country's government triggered market volatility.

The South African rand held steady against the dollar, as investors awaited mining output data and an interest rate decision by the central bank. Currencies in central and eastern European economies including Hungary, Poland, and the Czech Republic were a touch lighter versus the euro.



New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Guinea’s elections hearken back to the autocracy and violence of its past

... ...


Latest News

1 killed in building collapse in Kolkata

One person was killed after an old building collapsed in Entally area of Kolkata on Tuesday, police said. The person was trapped under the debris of the two- storey dilapidated structure on Convent Road, a police officer said.The building c...

What you need to know about the coronavirus right now

Heres what you need to know about the coronavirus right now Beware of false finish line, WHO expert saysEurope and North America should follow the example of Asian states by persevering with anti-COVID measures and quarantining anyone who c...

Teenage girl falls from roof after being chased by monkeys, dies in UP

A 13-year-old girl died after she fell from the roof of her house as she was chased by a troop of monkeys in Muzaffarnagar district in Uttar Pradesh on Tuesday, police said. The girl, a student of class 8, had gone to the roof to remove dry...

Rishikesh gets govt’s in-principle approval to set up waste management plant

The Uttarakhand government has given its in-principle approval to set up a waste processing and disposal plant in Rishikesh. The state government has agreed in principle to grant 10 hectares of forest land to the Rishikesh Municipal...

Give Feedback