Decline as oil prices fall & Fed optimism

Emerging markets declined as oil prices fell and optimism that the US Federal Reserve will hold off on raising interest rates in the coming weeks.

Oil prices fell 3.3 per cent as the International Energy Agency (IEA) said a global shortfall may continue into 2017.

“Emerging markets seem to move more in line with the overall commodity complex, particularly oil. For the preceding weeks, everyone had been convinced there would be no rate rise in September, and for a few days that conviction has been diminishing," ” said Tony Hann, the head of equities at Blackfriars Asset Management.

The MSCI Emerging Markets Index declined 0.7 per cent as currencies weakened across emerging markets.

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Read more at Bloomberg.