EMERGING MARKETS-Tumbling oil drags emerging stocks, currencies lower

By Karin Strohecker
LONDON, Aug 2 Emerging stocks suffered their
steepest one-day fall in nearly 4 weeks on Tuesday and
currencies came under pressure after oil costs extended losses
following an overnight tumble.
MSCI’s emerging market index fell 0.5 percent,
pulling back from near-12 month highs struck in the previous
session, with stocks in Russia, South Africa
and Turkey all in the red.
Currencies, a few of which had a strong begin to the week,
fared little bit much better with Turkey’s lira and South Africa’s.
rand weakening 0.3 percent versus the greenback, regardless of.
a similar retreat in the dollar index.
Current information showed development relieved in the euro zone last month,.
with international manufacturing data from factories in China, Japan.
and in other places in Asia offering just modest comfort and moistening.
hopes that demand would improve for metals and oil
.
The warm development data and oversupply concerns sent U.S.
crude prices crashing listed below the essential $40 per barrel mark.
on Monday while copper prices also fell.
Fund managers forecasted more volatile times ahead.
” Emerging economies are still set on an enhancing pattern,”.
analysts at possession manager Unigestion composed in a note to clients,.
including they expected both emerging and established markets to go.
through a “subtle mix between periods of growth and market.
tension” in the third quarter.
” Political threats and the potential hiccups in the Chinese.
circumstance are two prospective motorists of market stress episodes.”.
Possessions across emerging Europe were likewise under pressure with.
the exception of Poland where stocks increased 0.8 percent,.
while the zloty enhanced 0.1 percent against the.
euro.
Polish possessions were raised by optimism that a much-awaited.
bill to resolve the problem of Swiss franc denominated loans would.
damage banks less than anticipated with the Polish federal government due to.
present a draft bill on the home loans later in the.
day.
Nevertheless, Hungary’s forint deteriorated 0.3 percent.
versus the euro following 3 days of gains.
Analysts kept in mind that producing information had undershot.
expectations in both Poland and the Czech Republic.
” Overall, the weak readings (in central Europe) support our.
sub-consensus development forecasts for 2016 and enhance our view.
that CEE3 central banks will resume cutting rates,” Commerzbank.
experts composed, predicting the zloty to damage to 4.45 per euro.
and Hungary’s forint to 320.00 over the coming quarters.

Emerging Market values from Reuters.
Equities Latest Net Chg % Chg % Chg.

on year.

Morgan Stanley.
Emrg Mkt Indx 878.09 -4.46 -0.51 +10.57.

Czech Representative 872.46 -7.62 -0.87 -8.77.

Poland 1785.89 +23.77 +1.35 -3.94.

Hungary 27343.98 -124.90 -0.45 +14.31.

Romania 6707.11 -33.60 -0.50 -4.24.

Greece 555.80 -13.80 -2.42 -11.97.

Russia 907.27 -15.26 -1.65 +19.84.

South Africa 45497.55 -652.25 -1.41 -0.65.

Turkey 76075.56 -636.12 -0.83 +6.06.

China 2970.93 +17.54 +0.59 -16.06.

India 27974.52 -28.60 -0.10 +7.11.

Currencies Newest Prev Local Local.

close currency currency.

% modification % change.

in 2016.

Czech Rep 27.01 27.01 +0.01 -0.04.

Poland 4.35 4.35 +0.17 -2.01.

Hungary 311.54 310.55 -0.32 +1.00.

Romania 4.45 4.45 -0.02 +1.47.

Serbia 123.23 123.18 -0.04 -1.43.

Russia 66.86 66.99 +0.20 +9.11.

Kazakhstan 353.79 351.55 -0.63 -3.76.

Ukraine 24.83 24.81 -0.06 -3.52.

South Africa 13.97 13.92 -0.35 +10.68.

Kenya 101.35 101.20 -0.15 +0.84.

Israel 3.81 3.81 +0.09 +2.10.

Turkey 3.00 2.99 -0.29 -2.72.

China 6.64 6.64 +0.07 -2.19.

India 66.71 66.75 +0.07 -0.76.

Brazil 3.26 3.26 +0.11 +21.42.

Mexico 18.94 18.86 -0.42 -9.35.

Financial obligation Index Strip Spd Chg %Rtn Index.

Sov’ gn Debt EMBIG 384 -3.04 7 55.84 1.

All information taken from Reuters. Currency percent modification calculated.
from the everyday U.S. close at 2130 GMT.

For GRAPHIC on emerging market FX efficiency 2016, see link.reuters.com/jus35t.
For GRAPHIC on MSCI emerging index efficiency 2016, see link.reuters.com/weh36s.
For GRAPHIC on MSCI emerging Europe efficiency 2016, see link.reuters.com/jun28s.
For GRAPHIC on MSCI frontier index performance 2016, see link.reuters.com/zyh97s.
For CENTRAL EUROPE market report, see.
For TURKISH market report, see.
For RUSSIAN market report, see ).

( Extra reporting by Sujata Rao; Modifying by Alexandra.
Hudson).

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