Why did emerging market assets decline recently?

Emerging market assets declined due to rising oil prices and a lack of progress in Iran peace talks, which reduced investor risk appetite.

What was the performance of emerging market equities and currencies?

The MSCI emerging markets equity index fell 0.4%, ending a recent rally, and a concurrent index of emerging-market currencies dropped 0.2%.

What is the current status of the Strait of Hormuz and Iran peace talks?

The Strait of Hormuz, a key shipping lane, remains shut, and diplomatic efforts to resolve the conflict showed little progress, with the US extending a truce.

Home / Business and Economy / Oil Spikes, Peace Talks Stall; EM Assets Dip

Oil Spikes, Peace Talks Stall; EM Assets Dip

22 Apr

•

Summary

Emerging market assets declined due to rising oil prices and stalled Iran peace talks.
The MSCI emerging markets index fell 0.4%, ending a recent rally.
Concerns over the Strait of Hormuz closure and ongoing conflict continue.

Oil Spikes, Peace Talks Stall; EM Assets Dip

Revved-up emerging-market assets declined as rising oil prices and stalled Iran peace talks curbed risk appetite. The MSCI index of developing-world equities fell 0.4% as of 12:11 p.m. in London, ending a two-day rally. A concurrent index of emerging-market currencies dropped 0.2% as the Bloomberg Dollar Spot Index advanced, while Brent crude briefly climbed above $100 a barrel.

Diplomatic efforts to resolve the conflict showed little progress, with the Strait of Hormuz remaining shut. The US extended a truce while awaiting a revised peace proposal from Iran. Despite market volatility, emerging assets have held up relatively well, with stocks on track for their strongest start since 2006.