LONDON (Reuters) – Investment bank Goldman Sachs (NYSE:) said on Tuesday that it expected emerging market shares, currencies and bonds to see a modest rebound next year.
“We expect modest positive returns across the major EM indices next year, albeit with low risk-adjusted returns,” analysts at Goldman said in a 2019 outlook report.
They forecast that emerging market equities would see the biggest rise at 12 percent in dollar terms, while EM currencies should appreciate by around 2 percent on average due to economic improvements and a modestly weaker U.S. dollar.
On local currency bonds they added that closely tracked GBI-EM debt index to provide around 10 percent returns on an “unhedged” basis and including “duration effects”.
MSCI’s 24-country EM stocks index () is down 16 percent in 2018 so far.
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