Stocks and currencies of emerging markets show growth

The previous week, was the worst since August for emerging market shares has replaced by their growth in anticipation of the meetings of the world’s Central Bank on Monday. Increased inflation in the UK, analysts believe, will be the main factor that will prompt the English Bank to raise the base rate by 25 basis points in early February. At the same time, experts expect the European Central Bank to decide to keep the rate at the current level, since the ECB is sure that the increase in inflation is a temporary phenomenon. A negative factor for the emerging markets’ economy, which are China’s trading partners, was the slowdown in production growth in China. On Monday, the emerging markets’ currency index rose by 0.2%, while the index of their shares MSCI showed a daily gain of 1%. According to economists, if Chinese exports continue to decline, then the yuan exchange rate may come under pressure. Growth on the last day of January by 1.4% was demonstrated by the Turkish lira.

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Arseny Kudrin

Publicist, trader

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