Low Vol Leads To Big EM Inflows

On the back of global growth recovery and supportive monetary policy by core central banks, emerging markets logged another positive Q2 performance, notes Barclays. Christian Keller and colleagues said in their June 23 research piece titled “Calm on the surface, some turbulence beneath” that they believe global growth recovery remains largely intact, despite losing some momentum.

Global Growth Recovery, Low volatility channel flows into EM funds

Highlighting the low-volatility environment supporting EM capital flows, Keller and team point out in “The Emerging Markets Quarterly” that global market volatility has dropped to multi-year lows. The analysts believe a lighter global events calendar over the summer will augur well for EM assets’ performance.