August is turning out to be chaos for emerging markets.
Bonds and stocks from developing economies are poised for their worst monthly losses since last September after Nigeria’s central bank revealed it has less reserves than estimated, an outsider won primaries in Argentina and a presidential candidate was assassinated in Ecuador.
In the span of just a few weeks, the case for investing in developing assets has had a shakedown. Dollar-denominated government bonds have pared their 2023 rise to about 2.5% from a peak of 5.8%, according to data compiled by Bloomberg. An MSCI Inc. gauge of currencies, meanwhile, has wiped out much of the year’s early rally.
In Argentina, overseas bonds have tumbled since Javier Milei unexpectedly led in a closely watched presidential primary vote on Aug. 13, with vows to abolish the central bank and dollarize the economy. “Both are basket cases,” he said,” but one is deteriorating more and the other seems to be turning back into orthodoxy.”
“In Latin America. the focus is shifting from the economy to security, said Mauro Favini, a senior portfolio manager at Vanguard. “We’re seeing politicians are starting to shift away from populism and into more security concerns.”
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
What to look for when investing in a new company: Portfolio managerThe U.K. stock market has underperformed the U.S. and Canadian markets over the past year, but one market expert says there are many investment opportunities to be had despite the pullback.
Read more »
US ETF Market Ushers In Active Investing in India, Brazil StocksInvestors betting on Brazil and India as the markets least vulnerable to the turmoil in emerging markets now have the opportunity to buy stocks in those countries via actively-managed exchange-traded funds.
Read more »
Stock market today: Wall Street's dismal August drags on with 3rd straight losing weekNEW YORK (AP) — Wall Street limped to a mixed close, marking its third losing week in a row. The S&P 500 barely budged, ending the day down by less than 0.1%. It lost more than 2% for the week, like other U.S. indexes.
Read more »
Letters, August 19, 2023: 'We have only ourselves to blame'Calgary Sun Letters to the Editor, August 19, 2023: \u0027We have only ourselves to blame\u0027
Read more »