|Day's Range||86,528.50 - 88,384.22|
|52 Week Range||69,069.00 - 91,242.00|
Investors are returning to emerging markets, hoping to find bargains after one of the worst selloffs in years. Flows into developing countries’ stocks and bonds surged in November to $33.9 billion, their highest level since January, data from the Institute of International Finance showed. After years of double-digit returns, emerging markets have been slammed in 2018 by a host of concerns, from a stubbornly strong dollar to a trade conflict between the U.S. and China.
Landers, who was born in Brazil but has lived in the U.S. for decades, is one of the few names from foreign shops who’s bullish on the South American country. Foreign investors have pulled 9 billion reais ($2.35 billion) from Brazilian shares this year, on pace for the worst exodus since at least 2010, as they wait for more clarity on whether President-elect Jair Bolsonaro can deliver on promises to shore up the budget.
An end to the bull run in global stocks is not far away, according to a Reuters poll which also showed a broad cut to forecasts for next year on concerns over global growth and tightening financial conditions. World stocks tested lows at the end of October during a brutal rout that wiped off trillions of dollars of market value, driven by a U.S.-led trade war and a hawkish Federal Reserve. The recent turbulent sell-off in stocks is more or less over, according to nearly 250 equity strategists polled Nov 13-28.
(Bloomberg) -- Emerging markets rebounded as central banks including those of Indonesia and Mexico signaled commitment to support their currencies. Signs of progress in resolving U.S.-China trade frictions bolstered riskier assets later in the week.
BRASÍLIA—Brazil’s president-elect has put together a team of fiscal hawks to lead the economy, winning cautious approval from markets worried about the country’s ballooning debt. Jair Bolsonaro’s designated economy minister, Paulo Guedes, on Thursday proposed U.S.-trained economists Roberto Campos Neto, 49, to lead the central bank and Mansueto Almeida, 51, to stay on as head of the national treasury. Earlier this week the president-elect said former Finance Minister Joaquim Levy, 57, will lead Brazil’s large development bank, known as BNDES, the main source of funds for much-needed infrastructure projects in the country, but which until recently has also been a burden for taxpayers.
The U.K. showed early in this decade that it is more prone to inflationary pressure than other leading developed economies, as the pass-through from the sharp depreciation in sterling that accompanied the financial crisis drove up consumer prices. One is, of course, Brexit. Mark Carney, the governor of the Bank of England, has made clear that the bank must “prepare for the worst,” which would be a “no-deal” Brexit in which the U.K. suddenly exited the EU in March with no clear arrangement to follow.
Because of Brazil's unpredictable nature, Andean Capital CEO Dan Osorio is waiting to see how the president-elect of Latin America's largest economy will lead beginning in January. "As my Brazilian friends and colleagues tell me, Brazil is not for beginners, so predicting is far from easy," says Osorio. Far-right candidate Jair Bolsonaro won with 55 percent of the vote in Brazil's presidential election on Sunday.
The iShares MSCI Brazil ETF (EWZ) — which tracks Brazilian shares — has skyrocketed more than 18 percent this month, while global shares are down 9 percent. Far-right candidate Jair Bolsonaro triumphed over leftist Fernando Haddad in national elections, and investors will be watching to see if the controversial new administration delivers on economic and budgetary promises. Global stocks have taken a beating this month, but one surprising market has bucked the overall negative trend: Brazil .
The global bond market is tumbling, pushing borrowing costs to their highest since 2013. The escalating trade war between the U.S and China shows no signs of ending anytime soon — and may be getting worse. Italy looks to be headed toward a fiscal crisis and showdown with the European Union.
A poll released Monday by Ibope showed far-right candidate Jair Bolsonaro would tie Fernando Haddad, the left-wing candidate from Brazil's Workers Party, in a likely second-round runoff. Bolsonaro is seen as a more market-friendly candidate than Haddad given his economic platform, says Alberto Ramos, head of Latin American economics at Goldman Sachs.
Far-right candidate Jair Bolsonaro leads the polls heading into the first round of Brazil's presidential election. Other candidates, meanwhile, are seen as unwilling or unable to move forward with much-needed economic reforms to jumpstart the Brazilian economy. "The market would like to see a market friendly candidate win, but that's more of a dream than reality," says Goldman Sachs' head of Latin America economics.
The iShares MSCI Brazil exchange-traded fund (EWZ) surges 12.6 percent in July, posting its first positive month since January. "There is an improvement in risk sentiment across emerging markets and Brazil is piggybacking off of that," says Peter Donisanu, investment strategy analyst at Wells Fargo Investment Institute. Donisanu notes that recent easing of trade tensions between the U.S. and some of its key partners improved sentiment around emerging markets and Brazil.
The iShares MSCI Emerging Markets exchange-traded fund (EEM) is down more than 7 percent for the year as trade tensions between the world's largest economies intesify. Among the biggest decliners in emerging markets were Argentine, Turkish, Brazilian and Chinese shares. “This really resulted from the escalation in trade tensions on multiple fronts,” says one analyst.