Focus turns to reforms after Brazil votes to impeach Rousseff

The impeachment of Dilma Rousseff had been widely expected. The prospects for Brazilian assets now rest on economic fundamentals and much-needed reforms. With a greater-than-expected majority, Brazil’s Senate voted to impeach President Dilma Rousseff, removing her from office after her suspension in May. Rousseff is replaced as president by Michel Temer, who has been acting … Continue reading “Focus turns to reforms after Brazil votes to impeach Rousseff”

Emerging markets outperform in August

Emerging Markets Briefing – Emerging equity markets generally performed better than their developed counterparts during August, led by a strong contribution from China. The Shanghai Composite Index rose by 3.6%. During the month, a plan to connect the Hong Kong and Shenzhen stock exchanges was finally approved in principle. The International Monetary Fund (IMF) expects … Continue reading “Emerging markets outperform in August”

Emerging markets review – July 2016

Global equity markets generally rose during July, and the overall performance of emerging markets outstripped that of developed countries as investors sought growth opportunities. Investor sentiment in China received a boost from encouraging retail sales data: retail sales rose at an annualised rate of 10.6% in July, compared with 10% in July. Industrial production proved … Continue reading “Emerging markets review – July 2016”

China outperforms, but is this economy a one-trick pony?

Chinese GDP growth was better than expected in the second quarter, but appears overly reliant on one engine of growth: fiscal stimulus. Chinese GDP growth was unchanged in the second quarter of the year, at 6.7% year-on-year, though it accelerated in quarter-on-quarter terms to 1.8%, from 1.2% previously. The reading, along with other activity data … Continue reading “China outperforms, but is this economy a one-trick pony?”

Emerging markets could provide real diversification

Investors have generally been exhorted to ‘look internationally’ to compensate for domestic uncertainty, but is that really the best option? After all, given that the pound has slumped, investors are paying a lot more for, say, US or European assets than they were just a few short months ago. Looking internationally has a number of … Continue reading “Emerging markets could provide real diversification”

Brexit boosts emerging markets

Emerging equity markets generally performed better than developed markets during June. Although the UK’s decision to quit the European Union (EU) exerted heavy downward pressure on share prices around the world, many developing markets enjoyed relatively strong performance. Sentiment towards emerging markets was boosted by supportive statements from leading central banks in the wake of … Continue reading “Brexit boosts emerging markets”

Disappointing economic data in China

Emerging equity markets generally performed less well than their developed counterparts during May. In particular, performance was pulled down by a steep decline in share prices in Brazil, as the country’s Senate voted to impeach President Dilma Rousseff. The Bovespa Index fell by 10.1% over May as a whole; nevertheless, over the year to date, … Continue reading “Disappointing economic data in China”