Oil Boon Will Add Extra Zip to Rally in Emerging-Market Assets - Bloomberg
Oil Boon Will Add Extra Zip to Rally in Emerging-Market Assets - Bloomberg
Oil Boon Will Add Extra Zip to Rally in Emerging-Market Assets
- Emerging bonds, currencies both set for best quarter in a year
- CPI data across EM markets has undershot forecasts since 2022
A refinery in Barrancabermeja, Santander, Colombia. Photographer: Nicolo Filippo Rosso/Bloomberg
Emerging-market bonds and currencies have powered ahead this month on optimism over the Federal Reserve’s pivot to interest-rate cuts. Falling oil prices are set to deliver a further boost.
Brent crude’s slide of more than 20% from its September peak suggests inflation is set to slow even further in developing nations in coming months, which will provide another reason to buy their bonds. Emerging-market currencies are also poised to gain as finances of net-oil importers improve.
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Oil Boon Will Add Extra Zip to Rally in Emerging-Market Assets
Related Knowledge Center: ENERGY BASICS: petroleum
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