Emerging market stocks declined as Brazil's decline continued despite a recent commodities gain.
The MSCI Emerging Markets Index fell 0.1 per cent while the Ibovespa declined 0.3 per cent in Sao Paulo. Brazil's decline is a result of the central bank signaling a moderate interest-rate cut in the coming months - far sooner than many economists had forecast.
“The big thing today is Brazil. I think the market had gotten ahead of itself pricing in rate cuts, and that’s feeding through,” said Neil Shearing, chief emerging markets economist at Capital Economics Ltd.
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