Emerging stocks halt four-day slide as rand gains

Dubai - Emerging-market equities halted a four-day slide, joining global financial markets in showing resiliency after recent geopolitical shocks.

The South African rand and Russian rouble led gains in developing-nation currencies amid a rise in crude oil.
The MSCI Emerging Market Index erased a loss of 0.3% to finish little changed, while a basket of currencies rose 0.1%.

Assets in developing nations stanched a series of declines sparked by speculation US interest rates will rise faster than previously expected as President-Elect Donald Trump seeks to increase public spending.

Markets around the world quickly looked past the assassination of Russia’s envoy to Turkey and a probable terrorist attack in Berlin on Monday, with risk-on rallies resuming amid thin trading leading up to the holiday period.

Demand for haven assets briefly rose following yesterday’s attacks, only to fade Tuesday; click here for more on the incident in Berlin, and here for the shooting in Ankara.

Emerging equities rose less than 0.1% after four days of losses. Most Latin American stock indexes were little changed.

The MSCI Emerging Markets Currency Index fell 0.1% after halting a three-day slide on Monday. Turkey’s lira gained 0.1%.

The central bank kept interest rates unchanged to support the economy, going against the expectation of economists surveyed by Bloomberg for a 25 basis point increase to the overnight lending rate Egypt’s EGX 30 Index jumped 3.4%, pushing its gain in 2016 to 73%.

Egyptian pound slumps 2.8% to record 19.36 per dollar South African rand and Russian rouble strengthened as Brent crude gained.

The majority of economists surveyed by Bloomberg say Trump will ease sanctions against Russia next year.
Research

The biggest concerns in 2017 for investors in investment-grade assets are "populism in politics" and rising yields, while their non-investment grade counterparts are worried about asset bubbles and geopolitical conflict, Bank of America Merrill Lynch says in a survey-based report.