| Videos | Channels | Search |
Is it time to get back into emerging markets?
When the Federal Reserve signaled it may start reducing its USD 85 billion of monthly bond purchases back in May, Emerging markets felt the biggest pain.
India's rupee led the declines with a 16 percent loss during the period, followed by Brazil's real at 14 percent and Indonesia’s rupiah at 13 percent.
They have regained some ground since the Fed unexpectedly decided to maintain its debt buying on September 18th, so is now the time to get back in?
Michael Ingram of BGC Partners says emerging markets are in a honeymoon window and expects to see more flows into them over the next few months.
He says a weak dollar along with the news that tapering is off the table this year and interest rate rises have been pushed down the road gives a number of emerging markets breathing space.
The milestone will be Novembers China plenum session. Senior party members meet in Beijing to discuss deepening reforms and analysts expect the meeting to set China’s economic agenda.
During the third quarter China’s economy grew at its fastest pace this year (7.7 percent) boosted by strong investment. But the government spokesman warned of pressures facing the economy and economists expect the country’s growth rate to fall in the final quarter.
On the whole Michael says positive sentiment will continue over next few months, but next year people will look at structural reform – or lack there of!
01:40 minutes
Tags: bond buying, brazil, central bank, china, china's economy, declines, dollar, economic, economic agenda, economy, emerging, emerging markets, fed, federal reserve, flows, gdp, growth, india, indonesia, inflows, interest rate rises, interest rates, investing, investment, markets, plenum, plenum session, quantititive easing, real, reforms, rupee, rupia, rupiah, saxo bank, saxo tv, stimulus, structural reform, tapering, third plenum session, tradingfloor.com, video, weak dollar