MSF News and Press, Morgan Stanley Emerging Markets Fund Inc. From 07/05/21

Although global manufacturing output growth ran at one of the fastest rates seen for over a decade in June, capacity constraints continued to develop, reflecting a lack of labour and a record worsening of supplier delivery times. The shortfall of payroll numbers to new orders was espe...

With all the talk about inflation expectations, central bank policy, rising Treasury yields and fiscal policies, equity investors are trying to make sense of the market by focusing on the interest rate sensitivity of valuations and the tug of war between growth stocks and value stocks. ...

The expected risk premium for the Global Market Index (GMI) resumed an upward drift in June, rising to an annualized 6.0%. The current risk premium forecast for GMI - 6.0% - suggests that multi-asset-class strategies will generate lower returns relative to results posted in recent yea...

MSCI US REIT Index rallied 2.7% in June, which marks an impressive run of eight consecutive monthly increases. The Russell 3000 Index jumped 2.5% in June, the fifth straight monthly advance. Comparing GMI to US stocks and bonds shows that global asset allocation remains competitiv...

Emerging market equities have continued their ascent so far this year, though the pace has moderated from the momentum of 2020. What’s worth noting, however, is a growing divergence between the perceived challenges surrounding these markets and their demonstrated structural str...

The growth and productivity performance of emerging market and developing economies since the 2008 global financial crisis failed to repeat the achievements of the previous decade. Besides frustrating expectations that they might become the new growth pole in the global economy, their...

The reopening should continue across the major developed economies through the second half of 2021. The focus for markets has shifted to the strength of the growth rebound, the implications for inflation and the timing of central bank moves to taper asset purchases and eventually rais...

Central banks have entered tightening mode, often a threat to EM risk appetite, but we see opportunities. The MSCI EM equity index remains above its 2007 high while sentiment and flows have eased. EM is a stealth reopening play considering sector weights. EM fixed income doesn...

If you’re wondering about the potential direction for the dollar, the downward trend looks like it will resume thanks to the “twin” trade and budget deficits. From the June 11, ’21 Bespoke report, Paul Hickey notes the MSCI World Index (ex-US) has seen over...

US stocks rallied to record highs and dollar weakness returned as investors shrug off the hawkish tilt given at last week’s FOMC policy decision. The trading week ended with a mixed inflation report that contained a downside surprise with the monthly reading. The upcoming w...