Emerg­ing mar­kets

The Week Middle East - - City -

Trump’s threat to im­pose tar­iffs of up to 45% on goods from China and Latin Amer­ica could weigh heav­ily on emerg­ing mar­kets – par­tic­u­larly if in­fra­struc­ture spend­ing proves in­fla­tion­ary and drives up US in­ter­est rates, trig­ger­ing cap­i­tal out­flows. “Still, all is not lost,” said Mer­ryn Som­er­set Webb in the Fi­nan­cial Times. In fact, you may have a bet­ter chance of mak­ing pos­i­tive re­turns from some of these mar­kets than from US stock ex­po­sure. “Al­ready far from cheap”, US stocks “are priced for perfection in a very im­per­fect world”. Given that Trump and Vladimir Putin “seem keen to get along”, the ob­vi­ous emerg­ing mar­ket to look at is Rus­sia – long in a bear mar­ket, now ris­ing.

London prop­erty boost?

Global uncertainty trig­gered by Trump’s vic­tory, cou­pled with forth­com­ing Euro­pean elections, could well put London prop­erty “back on the map”, said Carol Lewis in The Times. The weak­en­ing of ster­ling in the af­ter­math of Brexit has al­ready seen an in­flux of in­ter­na­tional in­vest­ment cash, ac­cord­ing to Naomi Heaton, CEO of London Cen­tral Port­fo­lio. “This could in­crease the mo­men­tum.”

Traders re­act to the elec­tion re­sult

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