Emerging stocks record increase

Emerging-market stocks rose, led by India, as the rupee jumped from near a record low after the central bank eased overseas borrowing rules.

Bloomberg News reported that Persian Gulf shares sank on concern the United States is close to a strike against Syria.

The MSCI Emerging Markets Index added 0.4 per cent to 937.79. Indian shares surged the most in Asia and the rupee erased losses on speculation the monetary authority sold dollars.

Brazil’s Ibovespa rebounded as cosmetics maker Natura Cosmeticos SA led gains in consumer companies.

Dubai’s DFM General Index dropped by 3.7 per cent, the most among the 94 world gauges tracked by Bloomberg, while benchmark equity measures in Kuwait, Abu Dhabi and Saudi Arabia slid by more than 2.1 per cent.

The Reserve Bank of India, under new governor Raghuram Rajan, allowed companies to borrow from foreign shareholders, according to a statement.

 The United States Senate Foreign Relations Committee voted to authorise President Barack Obama to conduct a limited US military operation in Syria, the first step toward congressional endorsement of the effort.

“Currency risk is an additional factor with emerging markets; when central banks come back in to restore order, that risk premium will go away,” Kevin Caron, a Florham Park, New Jersey-based market strategist at Stifel Nicolaus & Company, which oversees about $150bn, said by phone.

“There’s been a little bit more risk aversion priced into the markets. Clearly, Syria is contributing to a little bit more investor angst.”

Investors also watched the Federal Reserve’s Beige Book for clues on how soon the central bank will begin tapering stimulus.

Americans spending more on cars and housing helped the economy maintain a “modest to moderate” pace of expansion from early July through late August, even as borrowing costs increased, the Fed said.

“This simply points the way towards confirming we’re going to have tapering,” Clement Miller, an investment strategist at Wilmington Trust Investment Advisors Incorporated, which manages about $20bn in assets, said by phone from Baltimore.

View Source

About ngcareers

Ngcareers is Nigeria's top jobs and careers community for working professionals and jobseekers to find interesting opportunities, discover and share insights based on their career interests. Click Here to Join. You can Connect with Ngcareers on Twitter, Google Plus, Facebook or Linkedin

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.