Stocks rise, Russian markets gain on rate cut hopes
June 19, 2020 @ 13:01 +03:00
Emerging market stocks were set for weekly gains on Friday as investors looked to monetary stimulus to fuel a post-coronavirus recovery, while markets awaited a Russian central bank meeting at which a cut in interest rates is widely anticipated. The MSCI’s index of emerging market stocks rose 0.6% and was set to add about 1.4% for the week after actions by major central banks, which has inspired some confidence in equities.
Bourses in China and India provided the most support to the MSCI index on Friday, while Turkish stocks led gains in Europe, the Middle East and Africa with a rise of about 1%. Russian stocks rose about 1%, while the rouble added 0.4% ahead of a widely expected interest rate cut. Elvira Nabiullina, the Russian central bank governor, has said it would consider a sharp cut “among other options” to support the economy through the coronavirus crisis.
Developing world stocks have stuck to a tight trading range over the past week, similar to a range seen in April, where markets had rallied sharply from March-lows before sticking to a holding pattern for nearly two months. Emerging market currencies were muted, as fears of a second wave of coronavirus infections spurred safe haven demand for the U.S. dollar and gold. Turkey’s lira lagged its regional peers, while in central Europe the Hungarian forint and the Polish zloty weakened against the euro.
Stocks rise, Russian markets gain on rate cut hopes, FinancialPost, Jun 19