With the eyes on the US presidential election and the second wave of Covid-19, investors around the world can be forgiven if they have missed two important warnings from emerging markets.
However, with the election (almost) out of the way, it may be time to go through the rest of the news flow and think properly about the two events that may have been overlooked: the postponing of the world’s biggest stock listing (China’s Ant Group), and the firing of the governor of the Turkish central bank.
Investors in European equities have had a great time since the European Central Bank (ECB) made a U-turn on money-printing and joined the global currency war, but that has changed recently and many investors wonder if the change is more than a temporary setback.
European equities staged a relief rally on Friday after the results of the referendum in Scotland showed the United Kingdom will remain intact, but this may be due to money coming back into shares, rather than to any new investment.
Data from the research departments of two major banks showed that money has been flowing out of Europe over the past week, just as the take-up of the European Central Bank’s first targeted long-term financial operation (TLTRO) disappointed.