Displaying items by tag: emerging markets

Dodge & Cox Emerging Markets Stock earned a Medalist Rating upgrade to Silver from Morningstar, thanks to increased confidence in its disciplined mix of qualitative judgment and quantitative screening, particularly valuable in navigating under-researched segments of emerging markets. 

This hybrid approach, while unusual for the firm, uses a valuation-weighted model to flag potential opportunities, especially among smaller-cap names, before handing decisions over to the fundamental research team. Since its 2021 inception, the fund has delivered solid performance, outperforming a majority of its peers and its benchmark. Its portfolio, broader than other Dodge & Cox offerings, includes over 200 holdings with considerable overlap in top names with the firm's international strategy. 

The JPMorgan US Research Enhanced Equity fund also saw a Morningstar upgrade, thanks to a highly stable and experienced 19-person analyst team that has consistently driven strong stock selection within a benchmark-aware framework.

Finsum: Now, could be a good opportunity to capitalize on certain EM as trade disrupts markets. 

Emerging-market stocks declined for a third straight day as anxiety mounted over President Trump’s upcoming global tariff rollout. The benchmark index for developing-nation equities dropped 1.6%, hitting its lowest intraday level since mid-March, with Taiwan’s Taiex plummeting 4.2% and officially entering correction territory. 

Investors across the globe pulled back ahead of the April 2 tariff deadline and a week packed with key U.S. economic data, including Friday’s jobs report. Strategists from Brown Brothers Harriman expect strong U.S. data to lift the dollar and continue pressuring emerging-market currencies.

Despite this week’s volatility, emerging-market assets are on track to post quarterly gains, aided by a softer dollar and hopes of a slowing U.S. economy. Meanwhile, South Africa’s rand rose on signs of a potential budget agreement, and Thai officials reassured investors of economic stability following a damaging earthquake in Myanmar.

Finsum: Without a roll back in tariffs, emerging markets are going to be difficult to navigate in the coming months. 

After years of low volatility, foreign exchange trading is roaring back to life. The currency desk, once overshadowed by stocks and bonds, is thriving as global interest rate policies diverge and trade tensions resurface. 

Optiver’s FX volumes have doubled since 2024, prompting a shift to 24-hour operations, with new hires and strategic relocations to meet surging demand. Banks are also rebuilding their currency trading teams, recruiting veterans from the 2008 financial crisis alongside fresh talent eager to navigate the revived market turbulence. 

Hedge funds are fueling the momentum, with record-breaking activity in Asian currencies and a renewed belief that FX can add real value to portfolios. 

Finsum: Whether this marks a long-term shift remains uncertain, but for now, the “sleeping giant” of foreign exchange has undeniably awakened.

Recent movements in some of the most sensitive global assets suggest that the Federal Reserve’s decision to lower interest rates may have come too soon or might not be sustainable. Since the Fed’s rate cut in mid-September, emerging-market assets have acted as if borrowing costs will stay elevated, leaving them vulnerable. 

New risks, including rising U.S. Treasury yields and a stronger dollar, have overshadowed any benefits from the rate cut, with concerns over China’s lackluster stimulus and the potential return of Donald Trump to the presidency adding to market uncertainty. 

Investors in emerging markets are now positioning themselves defensively in the face of a stronger U.S. economy and a weakening Chinese one. While there was initial optimism, strong U.S. data and political tensions have reignited fears of persistent inflation. 

Finsum: This could have traders reassessing their strategies, unsure of how much more support they can expect from central banks.

Emerging-market stocks fell as new signs of economic trouble in China emerged, with trading volumes low due to the U.S. Labor Day holiday. The MSCI Emerging Markets Index slid 0.3%, driven by declines in Chinese giants like Alibaba and Tencent, despite gains in Taiwan Semiconductor. 

The drop followed data showing that Chinese factory activity contracted for the fourth month in a row, casting doubt on the country’s growth prospects for the year. Meanwhile, currency markets are bracing for potential U.S. interest rate cuts, with upcoming economic reports likely to shape the outlook. 

The Brazilian real weakened despite central bank interventions, amid rising fiscal concerns and political uncertainty in Latin America. In a related move, Hungary issued yen-denominated bonds, nearing its cap on foreign currency debt issuance.

Finsum: It will be critical to monitor exchange rates as the US begins letting rates fall, this could have a big impact on Ems