Can emerging markets bounce back?

Emerging markets have had a rough few months, but there are reasons to be positive on the sector

Cherry Reynard 4 September, 2019 | 2:27AM

brazil

It has been a rough few months in emerging markets. In July, China reported its slowest growth in 27 years after its manufacturing sector faltered amid trade tensions with the US. Meanwhile, Argentina appeared on the cusp of another crisis as reformist Prime Minister Mauricio Macri was defeated in recent primary elections. These events have been reflected in financial markets, which have lurched lower in the second quarter.

Emerging markets can’t seem to get back on their feet. After a long period when they were derailed by twin currency crises in Turkey and Argentina, they defied the weakness in developed markets at the end of 2018. However, they now appear to be struggling once again. With clear signs of weakness in the global economy, can they revive?

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About Author

Cherry Reynard  Cherry Reynard  is a financial journalist writing for Morningstar.co.uk