Investors bet on the ongoing recovery of emerging markets despite threats

Investors bet that the ongoing rise for months in the emerging markets still has a power to move forward, even with references to a router due to threats to impose customs duties and increase geopolitical tension. Fund managers in companies such as “Lazard astet Management” and “Picit Asset Management” are still buying local effects in Latin America, Asian currencies and some debt from high return countries. This optimism, which was paid for fading the fear of Trump’s commercial policy, received a new boost last week, after the sudden inflation tract in America revived that the Federal Reserve will lower interest rates more than once this year. This has contributed to pushing the dollar to the lowest level since 2022, which has strengthened the gains of assets in the emerging markets since the beginning of the year. “The growing momentum in the narrative of the dollar weakness, in addition to the high structural evaluation of the green currency, citing the existence of a larger space for investment in the local assets in emerging markets,” says Chris Press, director of the Governor in “Picit”. He added: “It is true that a decrease can occur, but I do not think that currency movements have reached the stage of exaggeration.” An exceptional achievement for emerging markets. Emerging markets have seen extraordinary, as currencies have recorded their best annual start since 2009, and stocks fared better than the S&B500, while local bonds have a sharp rise. This increase has led to a decrease in the additional difference in the returns that investors demand to retain the dollar bonds for countries classified without the investment grade to reach its lowest level in nearly four years. But it made the origin more vulnerable to the imminent American political dangers and the increase in conflict in the Middle East. The latest reminder was at the end of last week, after the Israeli air strikes on Iran. And strategists in “Morgan Stanley” believe that this means that traders “will” need cohesion “with the entry of the second half of the year. “The next few days will be decisive, but we believe the markets need stronger reasons to panic,” Johnny Golden and Seed Siddiqui said over the past two years. They confirmed their recommendation to ‘buy’ emerging currencies. The currency index in developing countries ended Friday’s trading, with a low 0.2%, despite the increase in tension. The index rose in eight of the past nine weeks. The assets category, which benefits from diversifying investment away from America, is also witness to a return in money flowing there, after billions of dollars from withdrawals over the past three years. This recovery comes at a time when the fund managers seek to diversify their investments of the US market, as doubts begin to surround growth and policy, after years of excellent performance. According to APFR Global data, reported by JP Morgan, Emerging Funds in Emerging Markets have attracted $ 738 million during the week ended June 11, the largest this year. It also attracted a $ 3.2 billion indicator fund, focusing on local government bonds in emerging markets, worth $ 255 million in May, which is the highest month long major centers in the dollar. They began to withdraw this trend. “Asian currencies are getting increasing attention, Aref Joshi, who participates in the leadership of the emerging market debt department in” Lazard “, changed his positions on the upcoming currencies of Europe and became more optimistic about Asia. Governor at Payne Bridge, and has the bridge of the bridge, and has the governor of the governor at Payne, and to bridge the bridge. fluctuations, which have dropped to a “Tahrir Day”, although we believe in the possibility of reaching the emerging currencies for big profits in the medium term, we have reduced our tactical exposure, “Antonina Tarasiuk said. By the dollar, this year would be under pressure in a scenario that avoids risks due to customs duties. Not requiring the exit from the market. “You may need to restructure some transactions in light of these potential obstacles, but at the same time you want to stay on the same path in this category of assets,” says Wim Vandnhuk, a partner in the company’s upcoming market debt management.