Ukraine War Uncertainty Rattles Emerging Markets
Emerging market stocks and currencies declined amid uncertainty around a potential Ukraine peace deal. The Jackson Hole symposium is drawing attention for insights on U.S. interest rate cuts. Ukraine bonds eased after reaching highs, with military support details for Ukraine still being discussed. Global markets remain volatile.
Emerging markets experienced a downturn on Wednesday as uncertainty loomed over a potential resolution to the Ukraine conflict. Investors shifted their focus to the upcoming Jackson Hole symposium, seeking cues on U.S. interest rate trends.
Ukraine's international dollar bonds saw a decline post-President Zelenskiy's U.S. meetings, having previously benefited from peace deal speculations. Military support contours for Ukraine remain under discussion by U.S. and allied officials, though concrete plans are still awaited.
Global market volatility was evident as MSCI's emerging market index and Asian stocks dropped, driven by Wall Street sell-offs. Central banks in Indonesia and South Africa reacted to the global economic climate, indicating ongoing uncertainty.
(With inputs from agencies.)
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