Investors deposited a record $12.7 billion in emerging market debt and equity funds in the week through Wednesday in response to the easing of Covid-19 restrictions in China, data showed on Friday. fair by BofA Global Research.
The sudden shift in Chinese policy has boosted many different asset classes, from stocks in commodities and mining companies to currencies and equity markets in popular tourist destinations.
Hong Kong’s benchmark stock index, the Hang Seng Index closed this Friday (20) at a high of more than six months before the Lunar New Year holiday. Chinese blue chip stocks hit a five-month high.
European equities witnessed their first weekly inflow of funds in almost a year. BofA reported that there was an inflow of US$ 200 million in European equity funds, the first surplus in 49 weeks.
Europe has benefited from both China’s reopening and the recent drops in gas prices.
BofA’s “Bull & Bear indicator” is at 3.5, a 10-month high driven by inflows into emerging markets.
However, the report also said that markets still face a number of key uncertainties despite recent optimism, with central banks nearing the end of their aggressive interest rate hikes, as well as the possibility of an economic “hard landing” and the political tension in the United States around its debt ceiling.
Source: CNN Brasil
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