If emerging markets are to lead global economic performance one again as they did in recent years, an important foundation will be to convince as many people as possible that reported growth data are as accurate as they can possibly be.
If there is any silver lining for emerging market currencies after their thrashing in August, it is that they are probably now so cheap they don’t have much room to weaken any further.
For all its single-minded focus on lowering inflation, India’s central bank may be forced to acknowledge slowing growth in Asia’s third largest economy by cutting interest rates — probably faster than it expected.
South Africa’s second quarter growth undershot economists’ expectations in spectacular fashion on Tuesday, a clear signal emerging markets face torrid times.
Brazil’s monthly inflation rate eased below 1 percent for the first time this year in April and inflation expectations for 2016 have dropped for the first time in two and a half months.
Expectations may have been pushed to later this year for when the U.S. Federal Reserve will hike interest rates, but a repeat of another steep sell-off in emerging market stocks appears unlikely as much has already been priced in – and because of the stronger dollar.
The rapid erosion of Brazil’s job market is taking most economists by surprise, an analysis of Reuters Polls data shows, in a worrying sign that already-grim expectations for Latin America’s largest economy have not been pessimistic enough.
from Global Markets Forum Dashboard:
Sweeping economic reform initiated by China President Xi Jinping in November 2013 marked a turning point for the world's second biggest economy. If implemented fully, China's potential GDP growth can be sustained at 6 percent through 2020. One risk: Falling short of that growth rate could result in growth at half that projection, or worse, leading to a new economic crisis, according to a new study.
Brazil’s unemployment rate has been a mystery for months: a strike in the country’s statistics agency, ironically enough, disrupted its main job market survey. The numbers will finally come out in a few hours, less than two weeks before a tight presidential election, and will help voters understand just how bad the recently-confirmed recession has been.
from Global Investing:
By Andrew Winterbottom
Russian stocks are up today, for the fifth day in a row and at the highest level in two weeks. What's going on? As we wrote here earlier in the week, foreign investors have been fleeing this market. However it could be that some of them are starting to put aside concerns about the potential for further sanctions on Moscow and are scouring Russia's stock markets for contrarian buying opportunities.