(There will be no London-based emerging markets report on
Monday, Aug. 27 due to a public holiday)
LONDON Aug 24 (Reuters) – Emerging stocks fell nearly 1
percent On Friday to 2-1/2 week lows and emerging European
currencies weakened as Federal Reserve comments dented
expectations of U.S. monetary easing and worries about Greece
re-emerged.
Shares in Shanghai fell 1 percent to their lowest
close in more than three years on concerns about China’s slowing
economic growth while banks led Indian shares lower
after the central bank again indicated reluctance to ease
interest rates to shore up a slowing economy.
Benchmark emerging equities fell 0.85 percent to
their lowest since Aug 6. Stocks have fallen 1.5 percent from
3-month highs set earlier this month.
Uncertainty about whether the Fed will introduce more
stimulus hurt appetite for riskier emerging market assets.
Minutes of the Fed’s latest meeting, released on Wednesday, had
highlighted strong support among policymakers for more easing.
But St. Louis Federal Reserve President James Bullard told CNBC
television late on Thursday that the economic outlook had
brightened since that meeting.
The Fed’s easing polices in the past few years have directed
investment traffic towards higher-yielding emerging markets.
Turkish markets fell on receding global risk appetite,
paring some gains posted on Thursday after Fitch said it could
raise Turkey’s rating to investment grade.
In Central Europe, focus returned to struggling euro zone
member Greece which has close links with many emerging Europe
markets.
A working group led by Germany’s deputy finance minister is
studying the possible economic impact of a Greek exit from the
euro zone, a newspaper reported on Friday, as Chancellor Angela
Merkel prepared for talks with Greece’s prime minister.
Continued…
