Emerging-Market Equities Post Biggest Drop in Three Weeks
- Currencies trim decline after release of U.S. jobs data
- Investors await Italy’s constitutional referendum, S&P reviews
A Deep Dive Into Emerging Markets
Emerging-market stocks posted their biggest drop in three weeks amid concern higher U.S. interest rates will damp demand for riskier assets.
The MSCI Emerging Markets Index extended declines to a second day, falling 0.6 percent, as Fed funds futures signal growing bets the Federal Reserve will follow an interest-rate increase this month with additional moves next year. A gauge of emerging-market currencies rose 0.1 percent after an earlier 0.4 percent decline as a mixed picture of the U.S. labor market weighed on the dollar. Poland’s zloty strengthened as S&P Global Ratings raised the outlook on the government’s debt to stable from negative. Investors are awaiting an Italian vote on a constitutional referendum this weekend.