2014.11.1923:18:59UTC+00Emerging stocks rise on US rate bets, Ibovespa rises

Emerging-market stocks rallied as the recently released Federal Reserve minutes boost bets of an extended lowered US interest rates. This data bolstered demands for higher-yielding assets. Meanwhile, Brazilian stocks rallied with the Ibovespa heading the advance among the largest equity markets across the board as inflation surprisingly slowed. Russia’s ruble strengthened.

The MSCI Emerging Markets Index added 0.1% to 989.91. The gauge housed 442 stocks advancing as 339 declined. In the intraday trade, the measure was able to reverse a 0.3% decline immediately following the Federal Reserve minutes release that displayed policymakers concern for the slowing prices in the economy. The Ibovespa Index climbed by 2.6% to 53,402.81 at the end of trade in Sao Paulo sealing a two-day winning streak as led by banks. From the year high in September, the index has already shed a total of 14%. The IPX index of Mexico increased by 1% led by Grupo Bimbo SAB which reached a record high last seen in March.

Managing director of Spiro Sovereign Strategy, Nicholas Spiro, commented to Bloomberg that the Fed minutes released today are seen as positive for the emerging markets as it is apparent that the Fed is in a “data-dependent mode’ as well as the fact that there is still no clear consensus as to when and how the interest rates will hike. Spiro adds that the tightening in the US monetary policy is the most significant factor that is weighing on the emerging markets currently.