Emerging markets rebounding on Thursday in eager anticipation of the Federal Reserve guidelines, which will be outlined in a speech by Federal Reserve Chair Janet Yellen on Friday.
The MSCI Emerging Markets Index posted gains for Brazil, Turkey, and Taiwan. Currencies also fared well, as Colombia's peso and Russia's ruble strengthened due to a rise in oil prices.
Earlier in the week, emerging markets were down as political uncertainty in South Africa, Turkey, and Korea troubled investors.
“Investors are adjusting their positions ahead of Yellen’s speech. There is a growing sense that once Yellen is out of the way, and as long as she doesn’t turn hawkish, the great global yield hunt will continue next week," said Christopher Shiells, a senior emerging-markets analyst at Informa Global Markets.
Fed fund futures have climbed to 55 per cent, up from 47 per cent just one week ago ahead of Yellen's speech.
Read more at Bloomberg.