EMERGING MARKETS-Stocks, forex muted; Turkish equities propped up by Turkcell

  • Reuters
  • Stock Market News
EMERGING MARKETS-Stocks, forex muted; Turkish equities propped up by Turkcell
Credit: © Reuters.

* Turkcell rises about 9% on Wealth Fund deal

* MSCI EM stocks index up 0.1%

* South African rand lags broader peers

By Ambar Warrick

June 18 (Reuters) - Equities and currencies in the developing world were muted on Thursday as support from sustained stimulus measures to revive economic growth was countered by a resurgence in COVID-19 cases.

A spike in coronavirus infections in certain U.S. states raised concerns about fresh lockdown measures to combat the epidemic. A recent outbreak in Beijing also rattled sentiment. MKTS/GLOB

Still, the MSCI's index of emerging market stocks .MSCIEF rose about 0.1%, as recent gains on Wall Street saw investors turning more optimistic on equities, while the easing of pandemic-related lockdowns across the globe also helped.

Turkish stocks .XU100 were among the few gainers for the day, adding about 0.8%. Mobile operator Turkcell Iletisim TCELL.IS was the biggest boost to the index after the Turkey Wealth Fund on Thursday agreed to acquire control of the firm. of monetary stimulus continued to help broader stocks, with rate cuts from Brazil and Indonesia suggesting that major central banks stood ready with more liquidity measures. seems that there is a battle between those who are optimistic over an economic recovery as lockdown measures continue to be lifted around most of the world, and those who are concerned over a second wave of coronavirus infections," Charalambos Pissouros, senior market analyst at JFD Group, wrote in a note.

Emerging market currencies weakened slightly on the day, with the U.S. dollar .DXY and the yen JPY= enjoying sustained safe haven demand, pressuring risk-driven assets. USD/

South Africa's rand ZAR= was among the biggest percentage losers for the day, while stocks in the country .JTOPI also fell, despite President Cyril Ramaphosa outlining a further easing in COVID-19 lockdown measures on Wednesday. stocks .IMOEX fell, while the rouble RUB= was flat ahead of a central bank interest rate decision on Friday.

The bank is expected to cut its benchmark rate by a deeper-than-usual 100 basis points, as economic activity remains quashed by the coronavirus. European currencies such as the Polish zloty EURPLN= and the Hungarian forint EURHUF= retreated slightly against the euro, while stocks in the region also fell.

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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  • Bradley Mogate @Bradley Mogate
    This week is clearly not a good week to trade
    Like 2
    • Nkosinathi Hlongwane @Nkosinathi Hlongwane
      Definanately coz yoh🙆🏾‍♂️
      Like 0
    • Hlonnie Mashaba @Hlonnie Mashaba
      it's not... stocks are falling and currencies are on an odd range 😐
      Like 0
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