- Turkish lira reaches new low, c. Bank is expected to reduce rates
- Hungary C. Bank to start walking on Tuesday.
- Focus on the Federation meeting on Wednesday
December 13 (Reuters) – Most emerging stock markets and currencies were flat on Monday, ahead of this week’s Central Bank meetings and economic data.
Although the Turkish lira has depreciated sharply, inflation has reached 20% against the US dollar, which is expected to lower interest rates again. Read more
Lira is the worst performing EM currency this year, with government intervention in the central bank losing nearly half of its value, coupled with many economic problems that have left investors hating the currency .
Turkish stocks (.XU100) reached a high of 2,082.40 on Monday, with investors seeing the equity markets as a relatively safe way to protect the country.
Turkey’s output surpassed expectations when Turkey completed its fiscal profits in October.
Among other currencies in Europe, the Middle East and Africa, the Russian ruble fell 0.3 percent and the South African rand 0.2 percent.
MSCI EM shares (.MSCIEF) fell 0.1%, but the exchange index (.MIEM00000CUS) remained largely unchanged.
Many central banks are raising interest rates to ease inflation, as many economies have lifted their locks.
Investors are awaiting Central Bank meetings in Hungary, Chile, Indonesia, Taiwan, Mexico, Turkey, Russia, Colombia and the Philippines this week.
“Most central banks are trying to provide guidance for the market. But I’m not surprised if these efforts have been partially successful,” said Ulrich Luktman, head of FX and Commodity Research at Comerzbank.
“Although the epidemic and inflation are astonishing, everything needs to be fixed – this is unlikely.”
Focusing on this year’s US Federal Reserve meeting, the Bank is expected to outline its plans for raising incentives and interest rates next year.
Any early inflation by the federation will reduce the demand for risky assets, especially in emerging markets.
The European Central Bank (ECB) is set to provide further details on its plans to stem the tide of pandemic.
It was flat before the Central Bank meeting in Hungary Forint on Tuesday in Central Europe. The bank is the first of its kind in the region this year and is widely expected to raise interest rates.
For GRAPHIC, http://tmsnrt.rs/2egbfVh
A.D. See Graphic Performance for the 2021 MSCI Index Performance, https://tmsnrt.rs/2OusNdX
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