Bloomberg
Biden Win Emboldens Bulls as Emerging Markets Signal Buy
(Bloomberg) -- The emerging-market bargain-buyers are in celebration mode. And the party’s not over yet.The prospect of a Joe Biden presidency checked by a divided Congress has gotten everyone from Eaton Vance Corp. to Medley Global Advisors predicting a fresh boost for risk assets, just a week after the stocks, currencies and bonds of developing nations hit the buffers as the U.S. election approached. BlackRock Inc. says developing-nation assets, which look more appealing in this low-rate world, could benefit from a more moderate leader in the White House. The Biden administration’s policy approach will probably reduce uncertainty, according to UBS Global Wealth Management.Gains for emerging markets would support the view that the election result is likely to cap U.S. interest rates for longer and weaken the dollar, boosting the debt and currencies of developing nations as they struggle to finance efforts to contain the worst of the Covid-19 pandemic.Gauges of developing-nation stocks and currencies are both at the highest levels in more than two years after getting whipsawed last month by uncertainty over the U.S. election outcome. Local bonds had their best weekly performance since April last week. The Mexican peso and offshore yuan surged on the prospect of reduced trade tensions.“A Biden presidency with a Republican Senate is likely the best possible scenario for emerging-market assets and if this outcome holds it should provide a very strong backdrop for the asset class,” said Eric Stein, chief investment officer of fixed income at Eaton Vance in Boston. “Biden should have a less confrontational approach to China and other countries than Trump.”Listen: EM Weekly Podcast: What Biden Win Means for EM; Turkey SurpriseAsia’s markets will likely outperform their emerging peers as the region’s control of the coronavirus pandemic helps economies recover faster than in other parts of the world where strict lockdowns are returning. China’s October exports unexpectedly accelerated and inflation and credit reports due this week will likely signal stable underlying demand.“The flows data over the past few months suggest that investors’ purchases of EM assets have been heavily biased towards a handful of Asian countries,” said Nick Stadtmiller, a strategist at Medley Global Advisors in New York. “Asian economies are expected to grow faster than other emerging-market peers in the coming year, and that growth differential has been supportive of Asian markets.”Still, there are some fragile spots to be worried about. Turkey remains on top of traders’ watchlist after President Recep Tayyip Erdogan fired the country’s central bank governor and his son-in-law unexpectedly resigned as the country’s economy czar. Zambia could become Africa’s first sovereign defaulter since the onset of the pandemic if investors reject on Friday a request to defer interest payments on its $3 billion worth of Eurobonds until April.In Latin America, Mexico and Peru will decide on interest rates, while an International Monetary Fund mission will arrive in Argentina to negotiate with authorities on a new program.Turkey’s SurpriseThe lira surged the most since 2019 on speculation higher interest rates could be coming after Berat Albayrak resigned as the country’s economy czar and Erdogan dismissed the central bank governorErdogan appointed former Finance Minister Naci Agbal to replace Murat Uysal as the central bank chiefThe move is unlikely to alter the current trends of inflation, reserves and the lira -- if they are not followed by significant changes in policy, according to Goldman Sachs Group Inc.“Only future monetary policy actions will show if the new appointment once again implies a change in policy and, if so, in which direction,” economists Murat Unur and Clemens Grafe wrote in a reportThis may be evident by the Monetary Policy Committee’s next scheduled meeting on Nov. 19The lira remains the worst performing emerging-market currency of 2020Mexico, Peru to DecideMexico’s central bank will meet on Thursday and while many expect officials to leave the key rate flat, Bloomberg Economics is bracing for a quarter-point cut to 4%Inflation figures for October, meantime, probably ticked higher from a month earlier. September industrial production, out on Wednesday, is expected to flag a recovery from earlier this year while remaining below pre-pandemic levelsThe peso was among the top performers in developing markets last weekIn Peru, policy makers are expected to keep interest rates at 0.25% on Thursday and repeat their plans to keep conditions expansionary, according to Bloomberg EconomicsCongress will vote on a motion to impeach President Martin Vizcarra on Monday. Most investors expect the motion to fail just like last month’s attempt, but political uncertainty held back the Peruvian sol last weekData and EventsChina will announce CPI and PPI data on Tuesday. CPI probably slowed to 0.8% in October from 1.7% the previous month, according to a Bloomberg survey. China’s economy has been recovering from the pandemic but household spending may still be relatively weakChina’s local bonds have returned 6.8% this year in dollar terms, according to a Bloomberg Barclays index, while the onshore yuan has gained more than 5%China may also report on aggregate financing this week, which will reveal how much credit is supporting the economyThe Philippines will report third-quarter GDP on Tuesday, and Malaysia will announce the same data on FridayBoth nations are expected to say their economic contraction slowed in the period even as virus cases continued to take a tollThe Philippine peso is the third-best performing Asian currency outside China this year, while the Malaysian ringgit has weakenedTaiwan released October trade data on Monday. A recovery in exports and rising demand for technology products has seen the Taiwan dollar gain about 5% this yearIndia will report CPI figures on Thursday. Accelerating inflation has kept the Reserve Bank of India on hold since it cut interest rates in May. CPI for October is estimated at 7.25%, still above the RBI’s target range of 2% to 6%. India is also scheduled to report trade statistics this weekIndia’s local bonds are one of the best performers in Asia this year, even as the rupee trails all of its regional peersMyanmar’s ruling party led by Aung San Suu Kyi looked set to retain power, taking an early lead in results from the country’s second election since the end of military rule almost a decade agoThe kyat has climbed about 13% against the dollar this year, according to data compiled by BloombergIn Brazil, retail sales data for September, to be released on Wednesday, will be watched for signs of how lower emergency aid transfers effected consumer habits. A reading of economic activity for the same month will probably show a fifth monthly increase, according to economists surveyed by BloombergInvestors will watch for signs of more orthodox economic measures from Argentina as it tries to shore up investor confidence and lure capital back into the country after failing to stem a run on its currency with heavy-handed restrictionsAn IMF mission will arrive in Buenos Aires on TuesdayA reading of October inflation will probably show a pickupColombia will release September retail sales and industrial production data on Wednesday, which may offer clues on the pace of recoveryThe nation’s central bank last week improved its 2020 growth forecast saying the recovery in the third quarter was faster than expectedThe Colombian peso was one of the best performers in emerging markets last weekFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
"share" - Google News
November 09, 2020 at 03:13PM
https://ift.tt/32oVp1e
Share buy-back Program - Yahoo Finance
"share" - Google News
https://ift.tt/2VXQsKd
https://ift.tt/3d2Wjnc
Bagikan Berita Ini
0 Response to "Share buy-back Program - Yahoo Finance"
Post a Comment