Views & News

Global Pendulum Swing Spells Opportunity for Emerging Markets

| Emerging Markets Equities
James Syme
Paul Wimborne
Ada Chan
24 Aug 2024

Soft US jobs data and policy rate hikes in Japan triggered a rapid risk-off move across global markets this month, sending emerging markets scrambling amid a market rout. Despite high volatility, price movements have highlighted the potential of emerging markets as drivers of broad domestic demand and local financial markets, which could lead to an upswing — especially if the Fed paves a path to interest cuts.

 

Soft US jobs data and policy rate hikes in Japan triggered a rapid risk-off move across global markets this month, sending emerging markets scrambling amid a market rout. Despite high volatility, price movements have highlighted the potential of emerging markets as drivers of broad domestic demand and local financial markets, which could lead to an upswing — especially if the Fed paves a path to interest cuts.

 

Disclaimer

The views expressed are those of the portfolio managers as of August 2024 are subject to change, and may differ from the views of other portfolio managers or the firm as a whole. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice.

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