Manulife Asset Management case study

Global Emerging Markets: Strategy Review

Published by : Manulife Asset Management

September saw the US economy continuing to post strong economic growth, causing the US Federal Reserve to nudge up interest rates by a further 25 basis points. As a result, the US has now returned to positive real interest rates for the first time since the onset of the Global Financial Crisis.

There remains, however, a strong divergence between US markets and rest of world, as continuing trade tensions have depressed international sentiment.

Global growth and geo-politics continue to be led by the United States. Over the next six months we are likely to see the US Federal Reserve continuing to raise interest rates to prevent the US economy from overheating.

This will constrain the policy options of many EM countries, where financial conditions are being tightened and the impact of trade tensions may be intensifying. Significantly, there are already signs that the Chinese government is moving to provide a measure of fiscal stimulus to ensure that its economy does slow appreciably.

Published:17 October 2018

Business Area: Emerging Markets

Type: Portable Document Format (.pdf)

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