EMERGING MARKETS-EMEA stocks dip, Turkey inches up as economic confidence improves

  • Reuters
  • Stock Market News
EMERGING MARKETS-EMEA stocks dip, Turkey inches up as economic confidence improves

* Russia's rouble leads FX losses

* Turkish stocks among few gainers

* Hungarian forint worst performer in Central European FX

By Ambar Warrick

June 29 (Reuters) - Emerging market stocks extended losses into a fourth straight session on Monday, as the spread of the coronavirus around the world dampened optimism over a swift economic recovery.

The death toll from COVID-19 reached half a million on Sunday, according to a Reuters tally, and several countries, including the United States, grappled with a resurgence in cases after relaxing measures to curb the pandemic. in South Africa .JTOPI , Russia .IMOEX and Hungary .BUX traded in a flat-to-low range, with most other stock indexes in Europe, Middle East and Africa (EMEA) sticking to similar ranges.

Risk assets in the region had recently marked some gains, but they appeared to be falling into a trading range similar to that seen after the initial coronavirus-driven selldown in March.

The MSCI's index of developing world stocks .MSCIEF trended about 0.7% lower for the day. While the index has risen about 31% from lows hit in March, it remains about 14% off a pre-pandemic peak in January.

Turkish stocks .XU100 slightly outperformed their peers for the day after data showed the country's economic confidence index rebounded 19.1% month-on-month in June. The lira TRY= was flat to the dollar. the spike in new infections, investors fear the return of curbs on social and business activities in the developed world. This could derail a recent improvement in economic readings.

EMEA currencies failed to capitalize on momentary weakness in the dollar, with Russia's rouble RUB= leading losses in the region because of sustained weakness in oil prices. O/R

"Quite apart from the mini-move this morning the dollar has been able to appreciate again overall in the latest phase dominated by the fear of a second corona wave," Ulrich Leuchtmann, Head of FX and Commodity Research at Commerzbank (DE: CBKG ) wrote in a note.

Hungary's forint HUF= fell about 0.3% to the dollar, underperforming other Central European currencies after the country's central bank flagged a possible interest rate cut in July. For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX

For TOP NEWS across emerging markets CENTRAL EUROPE market report, see CEE/

For TURKISH market report, see .IS

For RUSSIAN market report, see RU/RUB

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