Salient to Investors:
Allan Yu at Metropolitan Bank & Trust said easing the US stimulus will siphon away some of the liquidity that fueled the rally in emerging stocks.
Adrian Mowat et al at JPMorgan said fundamentals and technicals are weakening and emerging-market stocks may enter a more significant correction after underperforming developed-nation shares this year.
Fitch Ratings raised its outlook for Poland’s debt rating to positive from stable.
MSCI Emerging Markets Index trades at 10.5 times estimated earnings, versus 13.7 for the MSCI World Index.
Michael Wang at Amiya Capital said we are in a tricky period of policy risk for China, with possibly more tightening related to the property sector and a slowdown in credit. Dariusz Kowalczyk at Credit Agricole CIB said the People’s Bank of China drained $146 billion from the financial system this week, the biggest withdrawal since Bloomberg started data in 2008.
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