Post by account_disabled on Dec 7, 2023 6:00:19 GMT 2
It is important to remember before making investment decisions that economic growth in emerging countries is never steady and is more like a roller coaster. When buying stocks after an upward trend, one should expect that they may fall short. Therefore, sometimes it is worthwhile to invest in a stock market that is not in the best shape, with the prospect of a reversal of the negative trend.
Summary
Currently, the greatest obstacle for emerging markets B2B Email List is the Russian invasion of Ukraine. As a result of the war, emerging market assets have suffered the most. In the first quarter of 2022, the MSCI Emerging Markets Index was down -7%. The negative effects of the war have most affected countries economically linked to Russia, including the Polish, Hungarian, Czech and Egyptian markets. Paradoxically, the Brazilian market benefited from the rise in secondary commodity prices. The Brazilian stock exchange recorded $14 billion in revenue in Q1 2022, thanks to which the MSCI Brazil USD index grew by 35% in the January-March period this year.
The stock exchanges of Saudi Arabia, Peru and Colombia were also not affected by major fluctuations. The energy and fast-moving goods sectors in particular were shaken. Russia has a not inconsiderable impact on raw material markets (metals, crops), as one of the world’s largest exporters. The most dramatic food situation is recorded in Egypt, where 85% of imported wheat was from Russia and Ukraine. If Russia occupies part of Ukraine and sanctions on it are not lifted then commodity prices will remain high and global GDP growth will decrease by 1-2 pp. Inflation will rise by about 4% and may remain at that level for several more years.
Summary
Currently, the greatest obstacle for emerging markets B2B Email List is the Russian invasion of Ukraine. As a result of the war, emerging market assets have suffered the most. In the first quarter of 2022, the MSCI Emerging Markets Index was down -7%. The negative effects of the war have most affected countries economically linked to Russia, including the Polish, Hungarian, Czech and Egyptian markets. Paradoxically, the Brazilian market benefited from the rise in secondary commodity prices. The Brazilian stock exchange recorded $14 billion in revenue in Q1 2022, thanks to which the MSCI Brazil USD index grew by 35% in the January-March period this year.
The stock exchanges of Saudi Arabia, Peru and Colombia were also not affected by major fluctuations. The energy and fast-moving goods sectors in particular were shaken. Russia has a not inconsiderable impact on raw material markets (metals, crops), as one of the world’s largest exporters. The most dramatic food situation is recorded in Egypt, where 85% of imported wheat was from Russia and Ukraine. If Russia occupies part of Ukraine and sanctions on it are not lifted then commodity prices will remain high and global GDP growth will decrease by 1-2 pp. Inflation will rise by about 4% and may remain at that level for several more years.