• The role of the Russian economy in the emerging markets has been diminishing since the 2014 sanctions were applied following the annexation of the Crimean Peninsula. Despite a recovery in 2021, Russia’s share in the global economy is now in further decline as the financial impacts of the Russia-Ukraine war are priced into global markets.
• Offloading Russia from global market indices has not brought dramatic changes to weight allocation in the top four emerging markets (Mainland China, Taiwan, South Korea and India).
• Russia’s decline has made Brazil the largest mover in 2022; however, high volatility could hinder further expansion of investment into Brazil’s equity market.
• China was already facing an economic slowdown in 2021. The new economic sanctions, imposed on Russia in reaction to the Ukraine invasion, are expected to bring extra turbulence to China’s economy. READ MORE
Similar Posts:
- Russia’s Path to Credit Strength Amid Biting Sanctions (PGIM Fixed Income)
- Emerging Market Investors Need to Think Beyond Investing in the BRICs (II)
- State Street Global Advisors’ CIO: Russia Stocks Could See Further Selloffs (FE Trustnet)
- Emerging Markets in the East Converging With Developed Markets in the West (Create Research)
- Which Emerging Markets Have the Most Leveraged Stocks? (Bloomberg)
- Resolving the SE Ukraine Conflict Would be a “Massive Buy Signal” for Russia (CNBC)
- Emerging Market CDS Volume Up 46% in 2014 (EMTA)
- India ETF Flows Touch $1.5 Billion, Highest Among its BRIC Peers (Economic Times)
- The Crimea: Already The Next Hot Real Estate Market? (MT)
- Russia Ukraine War’s Global Impact (MetLife Investment Management)
- Mark Mobius’s Emerging Markets Outlook (WSJ)
- Mark Mobius’s Favorite Emerging Markets: Indonesia, Russia, Brazil, Vietnam and South Africa (WSJ)
- Artemis’ Edelsten: Emerging Markets are Expensive With the Exception of China (What Investment)
- S&W’s McGrath: Emerging Markets Are at the Perfect Entry Point (FE Trustnet)
- Downgraded Countries Were Top Emerging Market Performers in 2016 (IOL)
