SPEM

Major U.S. indices saw volatility last week that ended on a negative note due to stalled stimulus talks. Asian and European markets ended lower last week on fears of rising coronavirus cases and choppy economic recovery. Markets in Asia have advanced on Monday on the back of the latest economic data showing recovery. 

Major U.S. indices continued their decline for the third day straight, with Dow Jones falling 0.07%, S&P 500 declining 0.15%, and Nasdaq 100 shedding 0.47% on Thursday. The decline comes as hopes of a stimulus before the U.S. election have waned, along with a surprise rise in jobless claims.

Looking back, EM equities have as a whole been resilient, with the MSCI Emerging Markets Index marginally positive year to date-performing broadly in line with the S&P 500 and MSCI World indexes.On the economic front, EM activity has continued to rebound, albeit at varying speeds across countries.Meanwhile, EMs have shown a continued appetite for structural reforms that could lay the foundation for lasting economic recoveries.EM corporate resilience - especially in industries bolstered by the pandemic - is likely to anchor market sentiment.

The rebound in asset prices and the easing in global financial conditions have benefited not only advanced economies, but also emerging markets.Policy measures have allowed firms to cope with cash shortages experienced during economic shutdowns by taking on more debt.Looking ahead, policymakers should carefully sequence their response to build a safe bridge to recovery.

Major U.S. indices fell on Tuesday led by bank stocks after big bank earnings failed to impress the market as the day ended, with Dow Jones declining 0.55%, S&P 500 falling 0.63%, and Nasdaq 100 closing 0.10% lower. Halt in vaccine trials and stimulus talks added to market worries.

Emerging markets are in the process of economic healing despite the uneven impact of COVID-19.China, in particular, has been well positioned for economic recovery in the third quarter and continues to move full steam ahead with gains in investment, industrial production, and services activity.Investing in emerging markets is for the long haul.

U.S indexes saw significant volatility last week that ended in gains, thanks to talks around stimulus. Dow Jones advanced 1.56%, S&P 500 gained 2.01% and Nasdaq 100 climbed 2.18% during the week. Most indexes across Asia had a positive week too, the sentiments of which have spilled over to Monday.

Emerging markets have had different approaches to coping with COVID-19 and are at different stages of recovery.Our emerging markets equity team examines trends, news and data shaping emerging markets in the third quarter, and shares its latest outlook.The market had expectations for greater normality into the final quarter of 2020, but with rising COVID-19 cases in Europe and select countries globally, it is evident the virus will persist.