Recovery as Fed holds rates steady

Emerging markets recovered as the US Federal Reserve (Fed) was seen to hold interest rates steady this week.

The Fed is expected to delay raising interest rates until October, with the chance of an increase this month now down to 18 per cent.

Last week, emerging markets hit their biggest drop in over four months.

“We are seeing a bit of a bounce as investors realize that the Fed is likely to remain dovish and China is still printing reasonable data. The weakness of the past weeks was not completely justified by what really happened with growth or Fed expectations," said Maarten-Jan Bakkum, a senior strategist at NN Investment Partners.

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Read more at Bloomberg.