Emerging markets to outperform developed countries in 2021: Mark Mobius

(Reuters) – Veteran emerging markets fund manager Mark Mobius expects developing markets to outperform their developed counterparts in 2021 as lockdowns end by early next year and a COVID-19 vaccine becomes available.

FILE PHOTO: Mark Mobius, founding partner of Mobius Capital Partners, speaks during an interview with Reuters in Mumbai, India, October 23, 2018. REUTERS/Francis Mascarenhas

Governments in developed countries won’t be able to continue supporting economies as they have in 2020, the founder of Mobius Capital Partners, told the Reuters Global Markets Forum from Dubai.

China is recovering well, Mobius said at the Reuters Global Investment Outlook Summit 2020, adding he also expected India to return quickly to its previous rapid growth.

“India and China are the big ones for us now, but a lot of these other countries like South Korea and Taiwan are very significant; and then if you go to Turkey and South Africa, prospects are

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Stocks Are Poised for a Record Month; Oil Retreats: Markets Wrap

(Bloomberg) — Global stock markets are on the cusp of finishing a record-breaking month sparked by major progress toward a coronavirus vaccine.

Trading was muted on Monday, with European stocks holding steady and U.S. futures slightly lower. The MSCI World Index has soared 13% in November, the best performance on record.

“I suspect that investors have become cautious after big gains in the last few weeks that were driven by the vaccine news,” said Peter Rosenstreich, head of market strategy at Swissquote Bank. “It’s a big positive as it’s really provided an endgame for Covid-19.”



chart: Europe on Top


© Bloomberg
Europe on Top

Value Rotation Gives Europe a $1.7 Trillion Boost: Taking Stock

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Over the weekend, U.S. Surgeon General Jerome Adams said the federal government hopes to quickly review and approve requests from two drugmakers for emergency approval of their Covid-19 vaccines.

The rapid pace to a vaccine has given investors

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Juniper Research: Mobile Money Users in Emerging Markets to Exceed 1.2 Billion Globally by 2025, as P2P and Merchant Payments Surge – Press Release

BASINGSTOKE, England–(Business Wire)–A new study from Juniper Research has found that the total number of mobile money users in emerging markets will exceed 1.2 billion in 2025, up from 980 million in 2020; equating to just under 30% of all mobile phone users across emerging markets.

The report predicts that domestic P2P and payments to merchants will be increasingly popular in mobile money schemes and will drive growth. The research recommends that mobile money providers agree partnerships with banks and other financial institutions, so as to increase the sophistication of the products they offer, in order to take advantage of increasing financial and technological literacy.

For more insights, download the free whitepaper: Mobile Money – Unlocking Emerging Market Opportunities.

Payments-as-a-Platform – Driving Future Opportunities

The new research, Mobile Money in Emerging Markets: SWOT Analysis, Vendor Strategies & Market Forecasts 2020-2025, identified that the payments-as-a-platform model, where mobile money payments act

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Emerging Markets Poised to Bounce Back in 2021

By Debbie Carlson

It’s been a tough decade to be an emerging-markets investor, as this sector has underperformed the S&P 500 since 2010.

But market watchers say after 10 years of lagging the U.S., emerging markets may finally be ready for prime time as valuations and a rebounding global economy could help the sector.

Marcelo Carvalho, head of global emerging market research at BNP Paribas, says although emerging markets still face several risks in the coming months, 2021 could be “a sweet spot” for these countries.

BNP Paribas, along with several other economic forecasters, say much of their 2021 outlook is based on effective and safe vaccines. So far several companies, including Pfizer, Moderna and AstraZeneca have announced 90%-plus efficacy in late-stage vaccine trials. It’s a sentiment that’s lifting all markets, including emerging markets, says Pat O’Hare, chief market analyst at Briefing.com.

“There’s welling up of expectations that you’re

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After market’s November surge, there may be less of a chance for a big ‘Santa rally’

Traders work the floor of the New York Stock Exchange.

NYSE

November’s strong rally may have stolen some of the thunder from a year-end rally.

Promising vaccine news spurred a major rotation in November into cyclical stocks, like industrials and financials – the stocks that will do well in an economic recovery.

The S&P 500 is up more than 11% for the month so far.

“If it’s up more than 10%, it will only be the third time since World War II that November has been up that much,” said Sam Stovall, chief investment strategist at CFRA. “Such a strong November has a tendency to steal from Santa.”

But he said he still expects the market to be higher than its current level at year end even if there is a small so-called Santa Claus rally, and there should be a gain for December. On average, the S&P 500 has

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Small Caps and Emerging Markets

If you have not already done so, I would recommend checking out Canterbury’s video that was posted last week.  It is a powerful update that provides a lot of context to today’s market structure: 

Throughout many updates in this year, we have talked about the weakness of certain asset classes in comparison to large cap stocks (the S&P 500 is an index composed of large cap stocks).  In this update, we will take an opposite approach and say that many segments of the markets, that have previously lagged, are now gaining relative strength over large cap equities.

Small Cap Equities

Small cap stocks, such as the components of an index like the Russell 2000, have certainly felt the impacts of the Coronavirus market panic more than most other equities. While the S&P 500 fell by -34% from peak to trough back in March, small cap equities saw a larger

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Innovative FinTech Startup Powers Mobile Engagement for Emerging Markets with 8×8

LONDON–(BUSINESS WIRE)–8×8, Inc. (NYSE: EGHT), a leading integrated cloud communications platform provider, today announced that OKO, a provider of index insurance and other farming-related services to smallholder farmers in emerging countries, has selected 8×8 to transform communications with farmers across Africa, dramatically improving service delivery and providing enhanced customer experiences via the 8×8 Communications Platform as a Service (CPaaS) Chat Apps API.

OKO provides effective, affordable crop insurance to farmers in emerging markets by using new technologies in satellite imagery and weather forecasting to simplify and automate the claim management process, making crop insurance accessible to thousands of smallholder farms. Serving the agricultural community across Africa, OKO was using SMS to communicate and engage with farmers for purchasing crop insurance and sharing valuable information, such as weather updates, to minimise crop damage. However, SMS communication was often limited and ineffective due to the low literacy rate of farmers.

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Emerging markets could break to all-time highs if the dollar breaches this level, Miller Tabak strategist says

Emerging markets have rallied this year, even keeping pace with the S&P 500 since the March low.

Why this investor advises portfolios should be exposed to China

UP NEXT

UP NEXT

From that March 23 bottom, the EEM emerging markets ETF and S&P 500 have rebounded more than 63%.

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The group’s next move depends on the U.S. dollar, according to Matt Maley, chief market strategist at Miller Tabak.

“The DXY Dollar Index, even though it was selling off for quite a while, it actually stabilized a little bit the last four months, and it’s bounced off the $92 level four or five different times,” Maley told CNBC’s “Trading Nation” on Monday. “If you see a breakdown in the dollar below that $92 level, that’s going to help the small outperformance the emerging markets we’ve seen over the last six, eight months become much bigger.”

A weaker dollar

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U.S. Stocks Rise on Reopening Rotation; Gold Drops: Markets Wrap

(Bloomberg) — U.S. stocks churned higher as investors piled into companies that will benefit most from a return to normal economic activity. Tech shares lagged behind, while gold slumped.

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The S&P 500 Index rose in afternoon trading that was 5% below the 30-day average. The Nasdaq 100 extended losses into a second day. AstraZeneca Plc became the latest firm to deliver positive vaccine developments, bolstering demand for cruise-line operators and airlines. Stocks had been weaker on news that cases continued to surge around the country and after New York’s mayor warned the city would be in “dire, dire shape” without additional federal aid.

Vaccine successes lately have added to a risk-on mood in markets and investors have snapped up assets that could benefit from the end of lockdowns and travel restrictions even as the virus rages across the nation. Investors have also started to anticipate Congress will again

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Emerging Markets Excitement Beckons For This Direxion ETF

Likely aided in large part by the results of the recent U.S. presidential election, the widely followed MSCI Emerging Markets Index is higher by 6.54% over the past month.

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What Happened

That index is up 9.31% year-to-date and appears poised for a double-digit annual gain for a second consecutive year, but that’s not the only reason risk-tolerant traders may want to acknowledge the Direxion Daily MSCI Emerging Markets Bull 3X Shares (NYSE: EDC) before 2021 arrives.

EDC attempts to deliver triple the daily returns of the aforementioned MSCI Emerging Markets Index and is higher by almost 20% over the past month.

Why It’s Important

EDC has credibility as a near-term bet because of momentum accrued on the back of market participants viewing the incoming Biden Administration as more hospitable toward China. By the way, the world’s second-largest economy and by far the largest geographic weight in the index

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