By David Lawder NUSA DUA, Indonesia (Reuters) - The International Monetary Fund on Tuesday cut its global economic growth forecasts for 2018 and 2019, saying that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows. The new forecasts, released on the Indonesian resort island of Bali where the IMF and World Bank annual meetings are getting underway, show that a burst of strong growth, fuelled partly by U.S. tax cuts and rising demand for imports, was starting to wane. The IMF said in an update to its World Economic Outlook it was now predicting 3.7 percent global growth in both 2018 and 2019, down from its July forecast of 3.9 percent growth for both years. The downgrade reflects a confluence of factors, including the introduction of import tariffs between the United States and China, weaker performances by eurozone countries, Japan and Britain, and rising … [Read more...] about IMF cuts world economic growth forecasts as import tariffs, emerging market issues bite
Emerging market countries
NEW YORK (Reuters) - The steep decline in emerging market stocks since early this year are attracting some U.S. fund managers who think they may find long-term bargains amid the sell-off. FILE PHOTO: The JP Morgan Beijing office sign is pictured in Beijing, China, December 13, 2010. REUTERS/Jason Lee/File Photo Portfolio managers from Harding Loevner, Federated Investors, and Wells Fargo are among those who have been adding emerging markets stocks to their portfolios in the face of the imposition of import tariffs by President Trump and rising interest rates in the U.S. Emerging market asset prices have been hit hard this year. The MSCI index of emerging market stocks .MSCIEF closed Friday at its lowest since May 2017 and it is down about 21 percent from January’s high. An MSCI index of emerging market currencies .MIEM00000CUS is down 8 percent from its 2018 high, hit in March. On Thursday, JPMorgan cut its rating on Chinese equities, the largest weight on the … [Read more...] about Emerging market stocks’ descent to 17 month lows entices U.S….
By Georgi Kantchev The Wall Street Journal Avantika Chilkoti Fri., Sept. 28, 2018 After a turbulent summer, emerging markets face another threat: $80 (U.S.) oil. Currencies in the developing world have been hit by a toxic mix of global trade tensions, a strong dollar and rising U.S. interest rates. That is making dollar-denominated crude all the more expensive as it climbs to four-year highs. The price of Brent crude, the international oil price gauge, has risen by 22% this year. But the cost has doubled if you’re buying in Turkish lira. It is up 39% in Indian rupees and 34% in Indonesian rupiah. Emerging-market countries and central banks are being forced to act. India, the world’s third-biggest oil importer, is weighing temporarily limiting oil imports, while Brazil and Malaysia have introduced fuel subsidies. On Thursday, central banks in Indonesia and the Philippines raised interest rates to tame rising inflation. Article Continued Below In … [Read more...] about Emerging markets’ double whammy: Expensive oil, weak currencies
NEW YORK -- Emerging market stocks led declines in indexes across the globe on Wednesday as investors positioned themselves more defensively while a deadline in the US-China trade conflict loomed and US-Canada trade talks resumed. Weakness in emerging market currencies offered some support to the dollar, which retreated modestly, as the euro rose and Britain's sterling regained some ground in volatile trading after a four-day losing streak. The United States and Canada resumed talks about revamping the North American Free Trade Agreement (NAFTA). Canada insisted there was room to salvage the pact despite few signs a deal was close. US President Donald Trump said talks with Canada were coming along. A public comment period on the possibility of fresh US tariffs on another $200 billion of Chinese goods ends on Thursday, with expectations that Trump will impose the additional levies. The deadline weighed on MSCI's emerging markets equities index, which fell 1.7 percent in line with a drop … [Read more...] about Emerging market woes weigh on stocks, China deadline looms
By Josh Zumbrun The Wall Street Journal Thu., Aug. 16, 2018 Turkey might not be the tip of a global economic iceberg. The collapse of the Turkish lira has investors worried the nation’s financial turbulence could spread to other countries, and the lira’s plunge in the past few days has hit other emerging-market currencies such as Indonesia’s rupiah, Mexico’s peso and South Africa’s rand. But few other countries are troubled by as broad a constellation of economic problems as Turkey. Its economic woes include one of the largest trade deficits of any emerging-market country, unmatched external debts, a currency vulnerable to decline, exceptionally high inflation, unorthodox monetary policy and very little international goodwill. That is a recipe for market blowback. Article Continued Below “There are special factors in that country,” St. Louis Fed President James Bullard said of Turkey in an interview Monday. “I … [Read more...] about Turkey’s economic red flags stand out among emerging markets