HSBC: Investors turn less bullish on emerging markets
Emerging markets investors turned a bit cautious ahead of 2025, based on the findings of HSBC’s 18th Emerging Markets Sentiment Survey. The net sentiment, which is the net of bullish versus bearish views, stayed positive for the ninth consecutive survey, albeit with a visible drop to 13 per cent from 25 per cent earlier. Dr. Murat Ulgen, Global Head of Emerging Markets Research at HSBC joins CNBC Africa for more.
Fri, 13 Dec 2024 16:06:28 GMT
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AI Generated Summary
- Shift from conditional love to tempered enthusiasm in emerging market sentiment.
- Investors weigh downside risks related to Fed policies and geopolitics, balanced by optimism around China's economic outlook.
- Preference for local currency debt markets over hard currency, with notable shifts in regional positioning towards Asia and the Middle East.
Emerging market investors have started to display a sense of caution as they look ahead to 2025, according to HSBC's 18th Emerging Markets Sentiment Survey. The net sentiment, which represents the balance between bullish and bearish views, has remained positive for the ninth consecutive survey, although there has been a noticeable decline from 25 per cent to 13 per cent. Dr. Murat Ulgen, the Global Head of Emerging Markets Research at HSBC, shed light on the survey findings during a recent interview with CNBC Africa. The survey, conducted between October 22nd and December 4th, captured the post-U.S. election environment marked by volatility, a strong U.S. dollar, and uncertainties surrounding trade policy and monetary developments. This backdrop has led to a more cautious approach among emerging market investors, as they navigate risks and opportunities in the global economic landscape. Although investors have tempered their bullishness, they are not entirely bearish, indicating a nuanced sentiment moving into the new year.