Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.

Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

Submit Post
සිංහල පරිවර්තනය

Display results as :


Rechercher Advanced Search

Latest topics

by anges Today at 1:32 am

» MACD A Powerful Tool to Predict Market Trends
by wiser Yesterday at 10:09 pm

by Yazaar92 Yesterday at 9:09 am

» Wiser's TA Chart Room
by Yazaar92 Fri Mar 16, 2018 6:29 pm

» HVA March reports
by Yazaar92 Fri Mar 16, 2018 3:32 pm

» Earn 1.5% daily interest.. guaranteed..
by Uaecoindubai Fri Mar 16, 2018 5:19 am

» Market Sell Off
by kovida Thu Mar 15, 2018 11:39 pm

» At least 30 % return within 30 days
by Theekshana Thu Mar 15, 2018 9:28 pm

» Stocks we can buy at current situation
by Harry82 Thu Mar 15, 2018 5:55 am

» Sri Lanka Equity Research
by Mohamed Siraj Thu Mar 15, 2018 12:13 am

» A Humble Request to Fill Up an Online Survey for Research Purpose
by Mohamed Siraj Thu Mar 15, 2018 12:06 am

» CDB is Silent killer in Banks.
by Harry82 Wed Mar 14, 2018 7:55 pm

» CDB - Jounery Begun..
by ranferdi Wed Mar 14, 2018 1:07 pm

» What is the situation of Adam Group
by ranferdi Tue Mar 13, 2018 2:58 pm

by sharemarket Tue Mar 13, 2018 1:43 pm

» Egg Supply of sri lanka. (NEWS)
by suku502 Tue Mar 13, 2018 1:38 pm

» REEF getting GREEN
by Ran49 Mon Mar 12, 2018 9:45 pm

» COCR can be attractive
by suku502 Mon Mar 12, 2018 8:53 am

» HSIG 10 Rs dividend at 73
by TuTanKaman Mon Mar 12, 2018 7:38 am

» VONE , is it time to sell or holds
by sameboy Sun Mar 11, 2018 8:19 pm

Forum Disclaimer

The information contained in this forum have been submitted by third parties directly without any verification by us. The information available in this forum is not researched or purported to be complete description of the subject matter referred to herein. We do not under any circumstances whatsoever guarantee the accuracy and completeness information contained herein. its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not in any way be responsible or liable for loss or damage which any person or party may sustain or incur by relying on the contents of this report and acting directly or indirectly in any manner whatsoever.

Trading or investing in stocks & commodities is a high risk activity. Any action you choose to take in the markets is totally your own responsibility, its blogs, forums, subdomains and/or its affiliates and/or its web masters, administrators or moderators shall not be liable for any, direct or indirect, consequential or incidental damages or loss arising out of the use of this information. The information on this website is neither an offer to sell nor solicitation to buy any of the securities mentioned herein. The writers may or may not be trading in the securities mentioned.

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market News » Fed Rate-Move Doubts Boost Emerging Stocks as Currencies Advance

Fed Rate-Move Doubts Boost Emerging Stocks as Currencies Advance

Go down  Message [Page 1 of 1]



Emerging-market stocks and currencies rose as traders bet the Federal Reserve will hold off on raising U.S. interest rates this week, shoring up demand for riskier assets, which have tumbled amid signs that China’s economic slowdown is worsening.

The MSCI Emerging Markets Index rose 0.6 percent to 807.66, building on the biggest weekly rally since April. Traders put the odds for a Fed rate increase at the Sept. 16-17 meeting at 26 percent, compared with 38 percent on Aug. 31. The prospect for higher U.S. borrowing costs and China’s shock currency devaluation last month led investors to flee riskier assets, pushing forward price-to-earnings ratios for emerging-nation stocks down to 10.7, a 29 percent discount to equities in developed countries.

While data showing a slowdown in Chinese industrial output sent the Shanghai Composite Index to its steepest loss in three weeks on Monday, Malaysian shares jumped the most in two years as the government said it will tap a fund to support the equities. Banking shares in Istanbul dropped for a fourth day as Citigroup Inc. downgraded some lenders to sell, saying the weaker currency was eroding their capital buffers. The lira declined 0.4 percent to a record 3.0593 per dollar.

“The market is not positioned for the Fed to raise rates,” said Aurelija Augulyte, a senior strategist at Nordea Bank AB in Copenhagen, who favors commodity currencies like the Brazilian real and South African rand after they “overshot” their fair values. “The Fed is not in a rush and even if they do hike, which they might, they will talk down the rate path, and maintain the gradualist tone, which should be emerging-market positive.”

Malaysian Support

A gauge tracking 20 emerging-market currencies advanced 0.2 percent, rising for a fifth day, while the premium investors demand to own developing-nation debt over U.S. Treasuries was unchanged at 393 basis points, according to JPMorgan Chase & Co. Indexes. Traders current prediction that there’s a 26 percent chance that the Fed will raise borrowing costs at its Sept. 16-17 meeting is down from more than 50 percent before China’s currency devaluation roiled financial markets and raised concern about global growth, data compiled by Bloomberg show.

The Brazilian real strengthened 1.5 percent against the dollar, ending a two-day slump, amid speculation the government is planning cuts as officials look to shore up the budget and avoid another sovereign credit-rating downgrade. The country’s Ibovespa equity gauge increased 1.9 percent, led by a 4 percent gain in lender Itau Unibanco Holding SA.
All 10 industry groups in the MSCI Emerging Markets Index rose. State-controlled enterprises steered the 2.3 percent rally in Kuala Lumpur after Prime Minister Najib Razak said the government will “reactivate” ValueCap Sdn. with funds of as much as 20 billion ringgit ($4.6 billion). Tenaga Nasional Bhd., a government-controlled power utility, jumped 6.6 percent, the most since December 2013.

China Risks

The Philippine Stock Exchange Index advanced 2.3 percent, led by a 6.2 percent gain in SM Investments Corp. Indian shares rose 1 percent after factory output and inflation data signaled an improving outlook for Asia’s third-biggest economy. The FTSE/JSE Africa All Share Index climbed 0.9 percent. Russia’s Micex Index added 0.5 percent.

Data out of China showed that risks remain to developing countries, particularly those that rely heavily on the world’s second-largest economy for their exports. The Shanghai Composite Index fell 2.7 percent after industrial output rose 6.1 percent in August from a year earlier, missing the 6.5 percent estimate. Investment in the first eight months also increased at the slowest pace since 2000.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum