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.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
