JP Morgan Says India Index Inclusion on Track, Clients Ready.
Firm expects $20 billion to $25 billion of foreign inflows JPMorgan Chase & Co. is on track to include India in its emerging market debt index from June with most of its clients ready to trade despite some “teething issues,” according to the firm’s global head of index research. The difficulty in setting up to trade in India due to an elaborate documentation process has been one reason why foreign investors have been apprehensive about the nation’s entry into global indexes. Last September, JPMorgan said it would include India in its emerging market bond index, where it will have a maximum weight of 10%. JPMorgan estimates foreign inflows will be between $20 billion and $25 billion, assuming an index-neutral position, Kim said. The firm estimates its emerging-market bond gauge currently has $216 billion of assets under management, she added. India’s entry into global bond indexes will open up an insular market where foreigners own just over 2%, helping develop another investor base. It also adds to the growing heft of the nation and its financial markets, which are seen as the next driver of global growth amid China’s economic woes. Indian sovereign bonds have seen about $8 billion of inflows into the so-called Fully Accessible Route securities since the JPMorgan announcement, though there were some outflows in April amid a global debt selloff. A Bloomberg gauge of the bonds has outperformed major peers this year. Source: BNN
US big tech revolution steamrolling emerging markets equities in one chart.
What would make this trend reverse? Source: BofA, Michel A. Arouet
The Imminent Inclusion of Indian Sovereign Bonds in EM Bond Indices is Attracting Huge Foreign Inflows👇
Source: Neha Sahni, JP Morgan
Record inflow to EM equities
Emerging Market Stocks see a weekly inflow of $20.8 billion, the most in history source : BofA, barchart
Egypt: The currency is in free-fall
Black market rate: 1 dollar = 70 pounds Official rate: 1 dollar = 30.9 pounds The pounds has weakened by nearly 24% in the market in 2024. Egyptian billionaire Naguib Sawiris criticized delays in enacting a long-awaited devaluation of the pound, suggesting authorities match the spiraling black market rate to end the nation’s chronic foreign-currency shortage. Postponing reforms is “a disaster that will increase the extent of the critical situation we are in,” Sawiris said in an Arabic-language post on social media platform X. Egypt’s pound has plunged on the parallel market to 68-70 per dollar in recent days, leaving it more than 50% weaker than the official rate of about 30.9. Source: Bloomberg, Ziad M Daoud
Did you know that Brazil has been leading Latin America in solar panel purchases? 🤔
Source: Markets & Mayhem
BofA Harnett: "...new 'BRICS 10’= 51% of global CO2 emissions, 46% of population, 45% of energy consumption, 45% of oil production, 37% of GDP (at purchasing power parity)…
yet <25% of global market cap, and EM equities also at 52-year low vs. US" Source: BofA, TME
🚨BRICS DOUBLES OVERNIGHT Yesterday, the UAE, Saudi Arabia, Ethiopia, Egypt, and Iran are officially members of BRICS.
They join Brazil, Russia, India, China, and South Africa as a formidable economic powerhouse, representing 29% of global GDP and 43% of global oil production. Although tensions exist between member states such as China and India, BRICS is a growing challenge to the G7. President Xi: “I wish to extend a warm welcome to leaders of new BRICS members.” Source: IMF, Reuters, China Daily, Mario Nawfal
