Insightful Word
  • Investing
  • Stock
  • Economy
  • Politics
  • Investing
  • Stock
  • Economy
  • Politics
No Result
View All Result
Insightful Word
No Result
View All Result
Home Stock

Foreigners pour $31 billion into EM portfolios in August, with Fed in sight -IIF

admin by admin
September 16, 2024
in Stock
0
Foreigners pour $31 billion into EM portfolios in August, with Fed in sight -IIF
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

By Rodrigo Campos

(Reuters) – Foreign investors ploughed a net $30.9 billion into emerging market stocks and debt portfolios in August as markets continue to position for an imminent rate cut from the U.S. Federal Reserve, data from a banking trade group showed on Monday.

Fixed income funds ex-China accounted for $27.8 billion of inflows, with $1.4 billion funneled to Chinese debt, the data show. The net inflow to stocks stood at $1.7 billion despite a $1.5 billion outflow from Chinese equities.

“The expectation of Fed cuts in the near future seems to be priced in and investors are positioning themselves into EM debt in large quantities,” said in a statement IIF economist Jonathan Fortun.

The monthly net total of $30.9 billion compares with $37.4 billion in July and a $21 billion outflow in August 2023.

A Fed rate cut is fully priced in by the end of this week’s policy-setting meeting, with bets for a quarter-point cut or a half point increasingly tilting towards the bigger reduction, according to the CME’s FedWatch Tool.

A week ago, the chance for a 50 basis points cut was at just 30%. The Fed meeting ends Wednesday.

“Moving forward we see Fed cuts aiding to the level of capital flows across the EM complex,” Fortun added.

“The potential for a wider rate differential between EMs and developed markets could draw more capital to EM assets, especially in countries with stable economic fundamentals and positive growth prospects,” he said.

Regionally, last month Asia saw a net $17 billion inflow, followed by $9.4 billion to Latin America, $2.6 billion to Africa and the Middle East, and $1.9 billion to Emerging Europe.

Year-to-date, foreigners have poured some $186.5 billion net into their emerging market portfolios, with net $162.5 billion going to debt.

This post appeared first on investing.com

Previous Post

What’s happening in Las Vegas shows Fed’s ‘soft landing’ is a good bet

Next Post

Citi gets more defensive on chip stocks, cuts ratings

admin

admin

Next Post
Citi gets more defensive on chip stocks, cuts ratings

Citi gets more defensive on chip stocks, cuts ratings

Trending News

Alibaba launches AI model Wan 2.1 for video and image generation

Alibaba launches AI model Wan 2.1 for video and image generation

February 26, 2025
Direct Line up 38% after rejecting Aviva’s £4.1B takeover bid: here’s what analysts think about it

Direct Line up 38% after rejecting Aviva’s £4.1B takeover bid: here’s what analysts think about it

November 28, 2024
Zomato to Eternal, Google to Alphabet, Facebook to Meta: why do companies rebrand and does it work?

Zomato to Eternal, Google to Alphabet, Facebook to Meta: why do companies rebrand and does it work?

February 7, 2025
Subscribe to Insightful Word


    Recent News

    Hyperliquid (HYPE) hits $50 ATH as institutional adoption accelerates

    Hyperliquid (HYPE) hits $50 ATH as institutional adoption accelerates

    August 27, 2025
    Webull stock price is in a deep slumber: will it wake up after earnings?

    Webull stock price is in a deep slumber: will it wake up after earnings?

    August 27, 2025
    Wall Street braces as Nvidia earnings test AI boom and China risks

    Wall Street braces as Nvidia earnings test AI boom and China risks

    August 27, 2025
    US stocks open flat ahead of Nvidia earnings: Dow up 25 pts, Nasdaq slips 0.1%

    US stocks open flat ahead of Nvidia earnings: Dow up 25 pts, Nasdaq slips 0.1%

    August 27, 2025

    Recent News

    Hyperliquid (HYPE) hits $50 ATH as institutional adoption accelerates

    Hyperliquid (HYPE) hits $50 ATH as institutional adoption accelerates

    August 27, 2025
    Webull stock price is in a deep slumber: will it wake up after earnings?

    Webull stock price is in a deep slumber: will it wake up after earnings?

    August 27, 2025

    Latest News

    • Hyperliquid (HYPE) hits $50 ATH as institutional adoption accelerates
    • Webull stock price is in a deep slumber: will it wake up after earnings?
    • Wall Street braces as Nvidia earnings test AI boom and China risks

    About Insightful Word

    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools
    • Contacts
    • Cookie Notice
    • Privacy Policy
    • Terms of Service
    • Trading tools

    Copyright © 2025 Insightfulword.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Stock
    • Economy
    • Politics

    Copyright © 2025 Insightfulword.com. All Rights Reserved.