Emerging market indices torrent ahead of US-China trade talk result


by   |  VIEW 164
Emerging market indices torrent ahead of US-China trade talk result

On Wednesday, the 9th of January, 2019, the emerging markets stocks alongside currencies rose, as the extended three-day-long trade talk between US and China, Jan 7th to 9th, had begun to roll the dice and investors are betting on a positive outcome.

As the risk appetite had been lowered by multiple comments from US and Chinese delegates, the MSCI’s index of emerging market stocks jumped on to a one-month high and while preparing this report, the index had been 1.3 percent up, Jan.

9th, GMT. 18.00. Alongside, the index of emerging market currencies nailed a gain of 0.2 percent, after breaching a five-month peak on Monday, Jan 7th, while the stocks of the countries exposed to global trade such as China, South Korea and Taiwan posted gains between 0.7 percent to 2 percent, despite faltered Chinese industrial data & PMI, soured South Korean export data and a crumbling chip demand.

Citing a cheerful market environment, a head of economics and strategy at Mizuho Bank, Vishnu Varathan wrote in a note, “Judging from upbeat equities on Wall Street against a backdrop of Trump’s cheerleading tweet for U.S.-China trade talks, it is patently clear that the mood music on U.S.-China trade talks is soothing, if not outright sweet!