EMERGING MARKETS-FX stable in a data-rich session; The zloty outperforms the EEC

The Polish zloty outperformed its Central European peers on Tuesday following the country’s 8.5% growth in the first quarter, while emerging market equities gained for a fifth session as Chinese stocks advanced in easing. COVID-19 restrictions in Shanghai. The rallying consumer and tech companies drove Chinese stocks higher, with the blue-chip CSI300 index and Hong Kong’s Hang Seng index up 1.6% and 1.4%, respectively, as the market recorded its highest foreign entries this year.

The MSCI index of emerging markets stocks made slim monthly gains and was on course to break its four-month slump, while currencies rose 0.6% in May. “When we had a development where it looked like the Fed might reverse its aggressive approach to higher interest rates, it (the Fed minutes) came as a breath of fresh air in financial markets and supported the risky mood,” Lukman said. Otunuga, senior research analyst at FXTM.

“Investors have been placed on this emotional roller coaster ride for the month of May and that continues to be reflected in equity markets, emerging markets and some currencies.” Poland – Central Europe’s largest economy – grew 8.5% in the first quarter, unchanged from a flash estimate, sending the zloty up 0.3%.

The Czech koruna rose 0.1% against the euro after data showed the economy grew faster than expected in the first quarter, with household consumption the main driver of growth before high inflation and expected interest rate hikes this year trigger a slowdown. Another Czech interest rate hike in June is more likely right now, central bank deputy governor Marek Mora told the Pravo newspaper.

The Hungarian forint gained 0.2% ahead of a rate decision where the central bank is expected to slow the pace of its hikes, even though the latest data shows that industrial producer price inflation in Hungary has accelerated for reach 28.8% in April against 25.9% in March. The forint is down 3.8% so far this month, underperforming its Central European peers after sharp falls last week on Budapest’s plans for windfall taxes on banks and other corporations.

Elsewhere, the Turkish lira fell 0.2% and headed for its fourth straight month of losses, after stronger-than-expected economic growth data was offset by higher foreign trade deficit figures in due to high energy prices and an increase in imports. The South African rand fell 0.5% against the US dollar ahead of the release of its first-quarter unemployment data and the latest trade balance figures later in the day.

For the 2022 Emerging Markets FX GRAPH, see http://tmsnrt.rs/2egbfVh For the 2022 MSCI Emerging Market Index GRAPH, see https://tmsnrt.rs/2OusNdX For the TOP NEWS in emerging markets

For the CENTRAL EUROPE market report, see For the Turkish market report, see

For the RUSSIAN market report, see

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)

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