EMERGING MARKETS-FX regains composure, stocks fall further on Delta woes

0
10

* MSCI EM FX pares most YTD gains

* CZK rises as producer prices beat expectations

* High yielders ZAR and BRL worst hit by rout

By Ambar Warrick

July 20 (Reuters) – Emerging market currencies appeared to have stabilized, while stocks sank further on Tuesday as worries over rising cases of COVID-19’s Delta variant drove broad moves out of risk-driven assets.

MSCI’s index of emerging market (EM) currencies fell about 0.07%, after tumbling 0.4% on Monday in its worst day in a month.

In Europe, the Middle East, and Africa (EMEA), the South African rand and Russian rouble rose about 0.2% each, while most other currencies inched lower.

MSCI’s index of EM stocks fell 0.5%, extending a 1.7% slide from Monday as rising Delta cases across the globe sowed fears of slowing economic growth, even as several countries began scaling back COVID-related curbs.

Most EMEA stock indexes rose on Tuesday.

Safe havens such as the dollar and the Japanese yen surged on renewed…

Read more…