Stocks, FX slide as rare China protests raise global growth concerns



*

China's COVID protests roil global sentiment

*

Hungarian business confidence worsens in November - GKI survey

*

Oil prices slide on demand worries, weigh on Russian stocks, rouble

*

EM stocks down 1.1%, currencies off 0.4%

By Bansari Mayur Kamdar

Nov 28 (Reuters) - Emerging market stocks tumbled on Monday as worries about protests against COVID curbs in the world's second-largest economy weighed on global investor sentiment and currencies in the region weakened against a stronger dollar.

Chinese stocks closed lower as recent monetary easing measures failed to offset concerns about COVID protests in the country, while the yuan CNY=CFXS slipped versus the stronger greenback.

"International investors have become a lot more cautious towards China," said Victoria Scholar, head of investment at Interactive Investor.

"Last week China cut the reserve requirement ratio (RRR) by 25 basis points (bps) to kick start its economy. However, this is unlikely to be enough to offset headwinds from Beijing’s harsh COVID lockdowns."

Overall, emerging market stocks .MSCIEF fell 1.1% and currencies .MIEM00000CUS slipped 0.4%.

The South African rand ZAR= weakened 0.5% against the dollar on concerns that China's unrest will weigh on global growth.

In Hungary, business sentiment worsened in November even as consumer confidence improved slightly, a survey showed on Monday, noting both measures remained near levels last seen during the pandemic.

The Hungarian forint EURHUF= added 0.2% against the euro in early trading. Other central and eastern European currencies also edged up against the euro, with the Polish zloty EURPLN= leading gains.

Poland is seeking German support to slap EU sanctions on the Polish-German section of the Druzhba crude pipeline so Warsaw can abandon a deal to buy Russian oil next year without paying penalties, two sources familiar with the talks said on Friday.

The Russian rouble and stocks followed global oil prices lower, as concerns rose about the outlook for fuel demand in China, the world's biggest crude importer.

E-scooter firm Whoosh said it is considering an initial public offering (IPO) on the Moscow Exchange, in what would be Russia's first public listing since it began what it calls a "special military operation" in Ukraine.

Turkey's lira TRY= edged higher against the greenback. The central bank of Turkey cut its policy rate by 150 bps to 9% last week and said it has decided to halt its easing cycle. For GRAPHIC on emerging market FX performance in 2022, see Link For GRAPHIC on MSCI emerging index performance in 2022, see Link

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see
Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Janane Venkatraman

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.