The world's largest asset manager has downgraded its outlook on emerging markets, including South Africa, choosing to be more neutral than bullish on developing economies' equity markets. Li said while emerging markets are currently enjoying tailwinds like commodity prices boom, those are being finely balanced by headwinds like the heightened US dollar volatility. The asset manager also expects a monetary tightening cycle in the emerging markets as many struggle with runaway inflation. She said in the developed markets, the variant has not translated into a rapid rise in new infections and hospitalisation rates. Also, any overreaction to future taper discussions can have ripple effects to emerging markets," said Li.

Source: News 24 July 07, 2021 18:00 UTC