EQUITIES: Investors "Tentatively" Dipping Toe Back In Emerging Markets - CIBC
If there were doubts in recent months about the global rebound, they were focused more on emerging markets than on the U.S. or Europe, according to a note from CIBC (CM.TO, CM). While there's due scepticism on data accuracy, the disappointments over China's slow start were allayed by a bit better-than-expected Q1 GDP, it says.
CIBC expects a weaker yuan and announced stimulus for housing, should keep growth close to the 7.5% target. Reversing early-2014's pattern, emerging stocks have outperformed the advanced countries since mid-March, it says. After fleeing earlier, fund flows data also suggest some investors are tentatively dipping a toe back in, it adds.
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