* MSCI EM stocks index set for 1.5% weekly gain
* MSCI EM FX index on track for 0.6% weekly decline
* South African rand poised for sharp weekly loss
* Central European markets up slightly
By Ambar Warrick
April 17 (Reuters) - Developing world stocks rose on Friday, heading towards a second straight week of gains on increased signs that the world's largest economy would soon emerge from coronavirus lockdown.
Adding to the optimism was a report detailing encouraging partial data from trials of U.S. company Gilead Sciences' GILD.O experimental drug remdesivir in severe COVID-19 patients. index of emerging market stocks .MSCIEF rose about 1.8% and was on course to finish the week up 1.5%. South African .JTOPI and Turkish equities .XU100 both gained nearly 2%.
U.S. President Donald Trump on Thursday unveiled a three-stage plan to exit the U.S. lockdown and restart the economy. came after signs that the outbreak may have peaked in U.S. and European epicentres, which bolstered risk appetite and pushed emerging markets further above lows hit in earlier stages of the outbreak.
Still, analysts warned of a long, arduous path to recovery from the economic impact of the pandemic, with China on Friday reporting a March-quarter contraction in economic growth for the first time on record. record 22 million Americans have sought unemployment benefits over the past month, with millions more filing claims last week, almost wiping out all the gains since the Great Recession. global recession remains the base case for the year and the economic outlook remains clouded with uncertainties. While policymakers are eager to limit the economic damage, the reopening of their respective countries could be upended by a swift resurgence of the coronavirus," FXTM analysts wrote in a note.
"The broad rollout of a COVID-19 vaccine is still the necessary catalyst for a return to life as it once was and would be the spark required for a sustained rally in risk assets."
This caution was partially reflected in forex activity, with most emerging market currencies gaining marginally or weakening despite a pause in the dollar's safe-haven rally. USD/
The MSCI's index of emerging market currencies .MIEM00000CUS traded flat for the day and set to lose about 0.6% on the week.
South Africa's rand ZAR= rose slightly but remained on course for a sharp weekly loss after a surprise interest rate cut by the country's central bank this week.
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
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.