Emerging-market stocks and forex under pressure on subdued sentiment
Emerging-market currencies incur more losses, including the rand, with ‘pessimism growing by the day’ heading into 2019
Bengaluru — Emerging-market shares fell on Friday, on track for a third straight week of losses with investor sentiment still subdued after US policymakers signaled future rate hikes. Most developing world currencies remained under pressure as the dollar started to recover from one-month lows. MSCI’s index for emerging-market stocks fell marginally as gains in Johannesburg and Hong Kong failed to offset substantial losses by mainland China shares, with the blue-chip index plumbing a 33-month low. A global sell-off ensued on Thursday after the US Federal Reserve stuck to plans to increase interest rates despite risks to growth and as the threat of a US government shutdown loomed. “Risk sentiment remains fragile amid worries of moderation in global growth, threat of a US government shutdown into holidays, and geopolitical risks (the US claim of Chinese spying poses risk to US-China trade talks),“ said Christopher Wong, Senior forex strategist at Maybank. The US and three allies chasti...
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