Emerging markets are holding firm despite heightening tension along the Ukrainian border, with investors observing the impact of major central banks catching up on the global tightening cycle.
- A number of emerging markets are improving. Aggressive central banks and high commodity prices are rising this year in over half of the 24 developing-world countries monitored by Bloomberg.
- Analysts expect corporate earnings to surge to an eight-year high. Investor risk appetite is holding strong in South Africa, the best performer this month in the local-currency debt market with total returns topping 6%.
- Phoenix Kalen, head of emerging-market research at Societe Generale in London stated that emerging-markets assets have been fairly resilient over the last several months of heightened Russia-Ukraine tensions.
Some money managers have argued that the more important development will be how much the Fed and other central banks affect global growth by hiking interest rates.