Emerging-market assets rallied in a week dictated by the outcome of the U.S. presidential election ahead of Democrat Joe Biden’s victory, though gains slowed as the vote count continued. Developing-nation stocks rose to the highest level in more than two years with both equities and currencies posting their best week in five months. The Federal Reserve left interest rates near zero and made no change to asset purchases.
The following is a roundup of emerging-market news and highlights for the week through Nov. 6:
Highlights:
- Biden defeated Donald Trump and he will become the 46th U.S. president, unseating the incumbent with a pledge to unify and mend a nation reeling from a worsening pandemic, faltering economy and deep political divisions
- The president-elect called on Americans to put aside the divisiveness of the past four years under Trump with a victory speech that promised swift action against the coronavirus pandemic and an orderly transfer of power after a bitter election
- Fed Chair Jerome Powell opened the door to a possible shift in the central bank’s bond purchases in coming months, saying that more fiscal and monetary support are needed
- U.S. nonfarm payrolls increased by 638,000 in October, compared with the 580,000 median estimate
- The U.S. became the first country with more than 100,000 daily Covid cases; the number of daily deaths also climbed, topping 1,000 for the third day in a row
- The U.S. dismissed as “unacceptable” Beijing’s warnings of further retaliation if the visas of Chinese journalists working in America weren’t renewed;
- Chinese President Xi Jinping called for setting up independent and controllable supply chains to ensure industrial and national security, just as the U.S. moves to cut China off from key exports
- Malaysia’s central bank held its benchmark rate at a record low, while warning of downside risks from the pandemic
- Poland kept borrowing costs unchanged at a record low 0.1% as new projections indicated that inflation will remain elevated
- Brazil’s central bank said possible changes to fiscal policy may alter its pledge to keep the benchmark interest rate at a record low for the foreseeable future
- Czech policy makers signaled they may postpone planned rate increases as the second wave of the coronavirus pandemic clouds the outlook for the economy
- Turkish President Recep Tayyip Erdogan fired the country’s central bank governor, the second time in 16 months he’s ousted the top monetary official, as a series of interest rate increases failed to halt the lira’s slide to a record low
Asia:
- Asia’s factories pushed ahead in October as managers remained upbeat about recovery prospects and virus outbreaks become less severe, manufacturing gauges show
Read more: https://www.bnnbloomberg.ca/u-s-vote-propels-assets-to-best-week-in-five-months-em-review-1.1519429
