Stocks near two-week high

Emerging market stocks have neared a two-week high as price volatility calms.

Investors anticipate the US Federal Reserve will adopt a policy of gradual interest rate increases in December, rather than in one fell swoop.

“After months of uncertainties, the market is clearly pricing Clinton to win the next U.S. election and a Fed hike for December, but with limited Fed actions thereafter,” said Regis Chatellier, a strategist at Societe Generale SA.

The MSCI Emerging Markets Index gained 0.7 per cent after a 1.6 gain in the previous week. 

Thirty-day volatility was down to 13 per cent, its lowest since early September.

“Volatility tends to rise when markets are nervous and or unusually uncertain. Certainty on U.S. elections has risen and nervousness about oil and China has diminished at the margin. Hence, there is lower volatility," said Tony Hann, the head of equities at Blackfriars Asset Management.

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