Equities across the developing world ended the session lower in tandem with global share markets, fading a rally that drove the S&P 500 to multiple records, in a session of rising US yields.
- MSCI’s EM currency index gained 0.1%, led by the South African rand and the Polish zloty; stocks dropped 0.3%
- “Stability in China FX can have ripple effects and I think that’s been on display in the last few trading days,” said Brendan McKenna, an emerging-markets economist at Wells Fargo
- All Latin American currencies gained on the back of news from China and commodity gains
- The forint rebounded slightly against euro after the government in Budapest affirmed it’s delaying a controversial change to the central bank law; central European peers the zloty and koruna also appreciated
- Senegal’s sovereign dollar bonds rallied, posting some of the best gains in emerging markets, as investors bet the recent election would lead to the western African country getting a stable government and Bassirou Diomaye Faye toning down some of the extreme policy measures he had outlined during the campaign
- Zambia has agreed to restructure $3 billion in eurobonds, clearing a key hurdle that’s delayed its three-year effort to escape debt default with implications for other nations seeking creditor deals
- Investors will be on the lookout for the personal consumption expenditures price index — due on Good Friday — as well as Brazil’s central bank minutes due Tuesday before the market open
- “Moves by various central banks mixing it up with hawkish cuts and dovish hikes makes one thing clear: the future is quite uncertain,” said Juan Pérez, director of trading at Monex USA
