Is Templeton Emerging Markets Investment Trust worth buying?
The very fact that the investment world categorises wildly diverse developing nations in this way gives it a kind of logic, however. Flows matter. If big institutions allocate more to the emerging markets bucket, everything in the bucket benefits.
And if the recent rebalancing of portfolios away from the super-dominant US carries on, every other market can expect a bit of a boost, including emerging markets.
A wider rethink about the asset class has been a long time coming. From about 2010 until very recently emerging markets had seriously unperformed, and the bull and bear cycles can last a long time. Emerging markets boomed in the 1980s, lagged in the 1990s and boomed again in the 2000s.
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Reuters
7 minutes ago
- Reuters
Rupee slips but sidesteps firmer dollar as flows dominate price-action
MUMBAI, July 28 (Reuters) - The Indian rupee dipped on Monday as month-end dollar bids from importers exerted some pressure, but the currency largely sidestepped the spillover from a firmer dollar, which traders indicated was due to the absence of substantial outflows. The rupee closed at 86.6650 against the U.S. dollar, 0.2% down from its close of 86.5150 in the previous session. While the rupee was trading marginally stronger in the first half of the session, it reversed course in the latter half as the dollar index rose. Asian currencies were a tad lower on the day, with the offshore Chinese yuan down by 0.1%. The rupee is "only reacting to flows" over recent sessions, and has found some support above 86.60, a trader at a state-run bank said, pointing to price action driven by foreign portfolio flows and corporate activity. India's benchmark equity indexes, the BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab fell 0.7% and 0.63% on the day, respectively, diverging from gains in most regional equities. The country's benchmark 10-year bond yield, meanwhile, ticked up to 6.3603%. Equities in Europe were mostly higher while the euro fell, after the U.S. and EU reached a trade agreement over the weekend and investors welcomed the deal with cautious optimism. The euro's recent price action "likely reflects more general U.S. dollar sentiment that was improving toward the end of last week, and we suspect (the sentiment) could extend further this week as investors' optimism over the U.S. economy improves," MUFG said in a note. U.S. economic data, including the closely watched non-farm payrolls report, will be in focus as investors gauge how far the optimism extends. The Federal Reserve, meanwhile, will deliver its policy decision on Wednesday and is widely expected to keep rates unchanged. Interest rate futures are currently pricing in a little over 60% chance of a rate cut in September, per CME's FedWatch tool.
Reuters
8 minutes ago
- Reuters
Exclusive: US Democrats, Republicans plan bills to pressure China as Trump pushes trade
WASHINGTON, July 28 (Reuters) - U.S. senators from both major parties plan to introduce bills this week targeting China over its treatment of minority groups, dissidents and Taiwan, emphasizing security and human rights as President Donald Trump focuses on trade with Beijing. The three bills, seen by Reuters ahead of their introduction, have Democratic and Republican sponsors, a departure from the fierce partisanship dividing Washington. Trump's push to reach economic agreements between the world's two biggest economies has strong support in Congress, especially from his fellow Republicans, but has prompted some China hawks to worry that the U.S. government is de-emphasizing security issues. "It does appear that President Trump is keen to negotiate some kind of deal with China, and gaps are opening between his approach to China and the approaches of some members of his team, as well as with Congress, which overall has been quite hawkish on China," said Bonnie Glaser, an Asia expert at the German Marshall Fund of the United States. The desire for a hard line on China is one of the few truly bipartisan sentiments in the perennially divided Congress, even as many lawmakers support Trump's efforts to rebalance the bilateral trade relationship. "The United States cannot afford to be weak in the face of the People's Republic of China and its aggression around the world," said Democrat Jeff Merkley of Oregon, a lead sponsor of all three bills. "No matter who is in the White House, America's values of freedom and human rights must remain at the heart of a clear and principled vision that guides our leadership on the global stage," Merkley said in a statement. White House officials have said that Trump remains fully committed to Asia-Pacific security issues as he pursues his trade agenda and a good personal relationship with Chinese President Xi Jinping. One bill, co-sponsored by Republican John Cornyn of Texas, would deny entry into the United States of current or former Chinese government officials who were deemed to have engaged in the forced repatriation of members of China's Uyghur minority. Human rights groups accuse China of widespread abuses of Uyghurs, a mainly Muslim ethnic minority numbering about 10 million in its northwestern region of Xinjiang. Beijing denies any abuses. Another, co-sponsored by Republican John Curtis of Utah, aims to help Taiwan as the island faces increasing pressure from China. It would support countries in Latin America and the Caribbean that maintain official diplomatic relations with Taiwan and would take other steps to deepen coordination with Taipei. China claims the democratically governed island as its own and has never renounced the use of force to bring Taiwan under its control. Beijing has stepped up military and political pressure against the island in recent years. A third bill, co-sponsored by Republican Dan Sullivan of Alaska, seeks to combat "transnational repression" - efforts by any foreign government to reach beyond its own borders to intimidate, harass or harm dissidents, journalists or activists. Facing Trump's August 12 deadline, top U.S. and Chinese economic officials will meet in Stockholm on Monday to try to tackle their longstanding disputes, hoping to extend a truce by three months and keep sharply higher tariffs at bay. Trump "cares about opening foreign markets to American trade, and that's what he's always cared about. And that is going to run counter to a lot of national security imperatives," said Michael Sobolik, who specializes in U.S.-China relations at the Hudson Institute. Democrats and some of Trump's fellow Republicans raised concerns about the announcement this month that Nvidia (NVDA.O), opens new tab will resume sales of its H20 artificial intelligence chips to China, days after its CEO met with Trump. This reversed an AI restriction imposed in April that was designed to keep the most advanced AI chips out of Chinese hands.
Reuters
8 minutes ago
- Reuters
Global slowdown could dampen demand for Indian exports, finance ministry report says
NEW DELHI, July 28 (Reuters) - A global slowdown could further dampen demand for Indian exports and continued uncertainty on U.S. tariffs may weigh on the country's trade performance in coming quarters, India's finance ministry said in its monthly economic report. India's goods exports fell to $35.14 billion in June, down 9% from May, and remained nearly flat from a year earlier. The figure was the lowest since November's $32.11 billion, according to LSEG data. "Despite global headwinds marked by trade tensions, geopolitical volatility, and external uncertainties, India's macroeconomic fundamentals have remained resilient," said the report released on Monday. Even as the outlook for Indian economy is positive, Asia's third largest economy faces downside risks such as a global slowdown, particularly the U.S. economy shrinking 0.5% in January-March, impacting India's exports, it said. The report also said that the country's inflation rate in 2025-26 could undershoot the Reserve Bank of India's (RBI) expectation of 3.7%. Retail inflation in June fell to over a six-year low of 2.1%. RBI Governor Sanjay Malholtra last week said the central bank has "won the battle against inflation", but the war is ongoing as price stability remains the central goal.
