Interest rate decisions in Hungary, Turkey, others this week
Markets watching tariffs, Philippine president to meet Trump
Singapore stocks hit record high for 14th session
MSCI EM FX down 0.1%, stocks up 0.2%
July 21 (Reuters) – Most emerging market currencies steadied while stocks were mixed on Monday as investors awaited trade developments in the U.S. and central bank decisions in emerging Europe.
Markets took a breather after a week packed with concerns over trade tariffs impacting U.S. inflation and worries over the Federal Reserve’s independence as President Donald Trump kept open the possibility of firing chair Jerome Powell.
Most EM currencies stabilized, with South Africa’s rand 0.1% higher against the greenback, while Turkey’s lira was little changed.
Russia’s rouble bounced back by 0.5% against the dollar, over-the-counter market data showed. The currency fell 0.8% in the previous session after the European Union agreed an 18th package of sanctions against Russia.
Currencies in emerging Europe were subdued against the euro. Central banks in Hungary, Turkey and Russia are scheduled to announce interest rate decisions this week.
MSCI’s gauge tracking global EM currencies was down 0.1%, after logging declines for the last two weeks.
“Emerging markets moved following the U.S. CPI report and comments from Trump that he would want to fire Powell… now it’s just a period of calm,” said Giulia Bellicoso, markets economist at Capital Economics.
Meanwhile, investors kept an eye on any trade developments with the United States. The Philippine president is meeting Trump this week, hoping to clinch a trade deal.
Only the UK, China, Indonesia and Vietnam have agreed a trade deal with the U.S. since Trump’s sweeping duties roiled global markets, however, investors are betting on more ahead of the revised August 1 deadline.
“If tariffs were to come into effect, it would be a big shock for markets as they’re cautiously optimistic about the outlook and still hope for negotiations,” said Bellicoso.
Stocks in emerging markets were slightly higher, with MSCI’s global EM stocks index up 0.2% on the day.
Bourses in Hungary and Romania were down 0.3% and 0.5% respectively, while South African stocks were up 0.4%.
Ones in Turkey gained 1.8%, trading at their highest levels since March 17.
Gains came in from heavyweight Asian stocks, with Singapore’s index touching a record high for a 14th consecutive session. The local central bank plans to place about S$ 1.1 billion with asset managers to boost the stock market.
The yuan eased slightly against the dollar after China’s central bank left benchmark lending rates unchanged, in line with market expectations.
** Trump, Xi might meet ahead of or during October APEC summit in South Korea, SCMP reports
** Congo, M23 rebels pledge in Qatar to reach peace deal next month
** Zambia sees economic growth picking up to 6.4% next year
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For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see (Reporting by Purvi Agarwal and Ankita Yadav in Bengaluru Editing by Christina Fincher)
