• Inside Labour

    Government's farming policies have had a damaging effect, says Terry Bell.

  • Hunter feeling the heat

    The killer of Cecil the lion is now the one getting hunted - by outraged Americans.

  • Making media behave

    Is patriotic reporting another name for whitewashing corruption, asks Leopold Scholtz.

Loading...
See More

Citi: Emerging market equities to rebound

Oct 07 2011 12:23
Reuters
Bangalore - Emerging market equities would rally by year-end after a short-term volatility caused by the European debt crisis, said Citigroup, which expects significant cuts to growth outlook for emerging Europe countries and South Africa.
 
In its global emerging markets strategy report, Citigroup said gross domestic product growth in emerging markets would remain strong at about 5.5% to 6% this year and next.

No central bank in its emerging market coverage would raise interest rates this year, it said in an October 6-dated note.

“Unless the world is about to relapse into a 2008-9 style recession or the euro is set to completely collapse, the long-term outlook for emerging markets equities looks positive,” Citigroup said.
 
The brokerage said it expects a double-dip recession in the euro area, but not in the United States, where it expects the economy to bounce back with a growth range of 1.5% to 2% through end of 2012.

Citigroup is underweight on Russia, South Africa and Mexico as a result of the global financial turmoil and its impact on local business sentiment.

The brokerage is overweight on China, Korea, Malaysia, Turkey and Chile, and upgraded India to neutral along with Brazil and Taiwan.

The MSCI Emerging Markets Index, which fell to a two-year low of $824.39 on October 4, was up 2% in Friday morning trade.
equities  |  rand  |  markets volatility  |  eurozone crisis

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About...

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Introducing tablets in schools is:

Previous results · Suggest a vote

Loading...