Emerging Markets Rally as Fed Signals Slower Rate Moves in 2017
- Equity benchmark set for monthly gain as risk demand returns
- Ruble strengthens as Brent crude rises toward $47 a barrel
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Emerging-market stocks and currencies rose for a third day as the Federal Reserve kept U.S. interest rates unchanged and indicated that the pace of tightening next year will be slower than previously projected.
The MSCI Emerging Markets Index advanced 0.8 percent to 905.65. The rally gained momentum following the Fed statement, which came after Japanese policy makers shifted the focus of their stimulus away from expanding the supply of money to controlling the shape of yields across different maturities. Developing-nation assets have been bolstered this year by global central bank policies supportive of demand for riskier investments.