Emerging-market equities rose to a record high, buoyed by optimism over artificial intelligence and a report that Iran offered a new proposal to reopen the Strait of Hormuz. The MSCI EM Index rose as much as 1.5% on Monday, surpassing the previous peak in February. Investors have been placated by a lack of re-escalating tensions in the Middle East, with a ceasefire between the US and Iran holding ...
Emerging-market equities rose to a record high, buoyed by optimism over artificial intelligence and a report that Iran offered a new proposal to reopen the Strait of Hormuz. The MSCI EM Index rose as much as 1.5% on Monday, surpassing the previous peak in February. Investors have been placated by a lack of re-escalating tensions in the Middle East, with a ceasefire between the US and Iran holding since early April. A gauge tracking developing-world currencies also gained about 0.2%. Read Axios report: Iran offers U.S. deal to reopen strait but postpone nuclear talks Emerging-market stocks are staging a stunning recovery after sliding more than 10% after the Iran war erupted. Gains in Asian shares, which comprise about 76% of the index , are helping the rebound as investors focused on optimism around AI, with indexes in South Korea and Taiwan hitting a record high on Monday too. The rally “underscores a market being propelled by structural forces rather than short‑term news flow,” said Gary Tan , a portfolio manager at Allspring Global Investments. “We expect the MSCI EM to grind higher into year end, led by strong earnings momentum from AI beneficiaries alongside sustained investment in energy, infrastructure, and defense.” EM stocks have advanced about 16% this year, thrice the gains of the S&P 500 Index . The MSCI Emerging Markets Index is projected to deliver an 18% return over the next 12 months, compared with 16% for the MSCI World Index, based on Bloomberg’s aggregation of consensus target prices for the constituents of both benchmarks. AI Boom Drowns Out War Fears to Fuel Asia’s Great Market Divide Asian Chip Stocks Rise on AI Trade Optimism, TSMC Soars to High Investors Dive Back Into Frontier Markets After April Rally
There are few things in the stock market that you can really count on. While we can be relatively confident that, over the long term, the S&P 500 will grow and help generate wealth, there will always be downturns that dampen your returns. If you really want a sure thing and have $1,000 to invest, turn to income-generating dividend stocks. Here are three surefire ways that you'll get that juicy yie...
There are few things in the stock market that you can really count on. While we can be relatively confident that, over the long term, the S&P 500 will grow and help generate wealth, there will always be downturns that dampen your returns. If you really want a sure thing and have $1,000 to invest, turn to income-generating dividend stocks. Here are three surefire ways that you'll get that juicy yield, regardless of what happens in the stock market. Image source: Getty Images. Continue reading
Goldman Sachs Group Inc. lifted its oil-price forecasts as the prolonged closure of the Strait of Hormuz spurs “extreme” inventory draws. Brent is expected to average $90 a barrel in the fourth quarter, up from a previous outlook for $80, analysts including Daan Struyven and Yulia Zhestkova Grigsby said in an April 27 note. The bank also hiked forecasts for the current and third quarters, the late...
Goldman Sachs Group Inc. lifted its oil-price forecasts as the prolonged closure of the Strait of Hormuz spurs “extreme” inventory draws. Brent is expected to average $90 a barrel in the fourth quarter, up from a previous outlook for $80, analysts including Daan Struyven and Yulia Zhestkova Grigsby said in an April 27 note. The bank also hiked forecasts for the current and third quarters, the latest in a series of revisions . “We estimate that 14.5 million barrels a day of Persian Gulf crude production losses are driving global oil inventories to draw at a record 11 to 12 million barrel-a-day pace in April,” they said. “Because extreme inventory draws are not sustainable, even sharper demand losses could be required if the supply shock persists longer.” The global oil market has been upended by the Iran war, with a double blockade of the Strait of Hormuz cutting daily transits through the key chokepoint to near zero. With millions of barrels of daily supply shut-in across the region, Brent has rallied by almost 50% since the start of the conflict in late February, threatening to lift global inflation while stunting growth. “We now assume a normalization in Gulf exports by end-June, versus mid-May prior, and a slower Gulf production recovery,” the analysts said. “The economic risks are larger than our crude base-case alone suggests because of the net upside risks to oil prices, unusually high refined-product prices, products shortages risks, and the unprecedented scale of the shock.” Given the disruption, the bank said there would be a deficit of 9.6 million barrels a day this quarter, compared with a surplus last year. Brent was seen at $100 a barrel this quarter and $93 in the third under the new outlooks. Futures last traded just below $108 a barrel, on course for a sixth daily gain, potentially the longest winning run of more than a year.