Emerging markets at mercy of Federal Reserve
Impact of China39;s slowdown uncertain
Debt in the spotlight at IMF meetings
Argentina, Pakistan, Kenya finances in focus
LONDON, Oct 6 Reuters Emerging economies are facing headwinds from all sides, with a recent selloff in U.S. Treasuries and China39;s slowing economy adding layers of uncertainty while the Federal Reserve might not have reached the end of its rate hike cycle.
Restructuring efforts for defaulted countries could reach a breakthrough before yearend as talks continue, while the finances of nations like Pakistan and Egypt will also be under scrutiny when policy makers and asset managers gather for the World Bank and International Monetary Fund39;s annual meetings in Marrakech next week.
The external backdrop does remain challenging for emerging and frontier markets across the board and that39;s out of their control, said Joseph Cuthbertson, senior sovereign analyst at PineBridge Investments. It very much depends on the pace and timing of a Fed pivot.
Below are key emerging market themes to follow in Marrakech
1CHINA SLOWDOWN
China39;s debtfuelled investment in infrastructure and property has peaked and exports are slowing in line with the global economy.
How the 13 trillion economy39;s slowdown will affect other emerging markets is still an unanswered question for investors.
Lower for longer Chinese growth is shaping a new regime of investments, Amundi39;s head of emerging markets Yerlan Syzdykov…