Investors warned about EM fluctuations
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THE latest funds flow to emerging markets will continue to be sensitive to expectations surrounding the US Federal Reserve's short-term interest rates hike so investors need to beware of money market fluctuations, said Bandid Nijathaworn, president and ch
“Two weeks ago it was all about how the Fed might hike their rates so the flow was going out and the markets were extremely fluctuated,” he said.
“Now this story has calmed down and the markets are now starting to talk about the delay in the Fed rates hike so the funds are flowing back to the region in the short term.”
Bandid said this would continue to add to the ups and downs in capital markets due to the uncertainty and the differences in expectations. He predicted the baht would be stronger as a result of the funds flow since investors would continue to look for short-term gains during this period of uncertainly.
Investors have to understand that there are fluctuations, he added.
Maybank Kim Eng Securities (Thailand) economist, Tim Leelahaphan, said the securities firm expected further monetary easing in China, Europe and Japan since their economies still needed the support of monetary policies.
