The origins of the emerging markets are recovering amid the progress of trade talks with Trump
The stocks increased in developing countries after US President Donald Trump expressed his willingness to negotiate with countries on customs duties, which strengthened investor confidence.
After announcing a “great progress” in negotiations with Japan, Trump said he would conclude a “good deal” with China, and expressed his confidence in reaching a trade agreement with the European Union, but he did not specify a time frame to complete these agreements, saying only that they would be “at some point”, stressing that other countries will need concessions.
The importance of Washington and Japan talks
The talks between the United States and Japan are receiving great attention as a test of other reluctant countries whether the American administration will demand major concessions in exchange for the reduction or cancellation of customs duties.
The index that tracks the performance of emerging markets increased by 0.8% on Thursday, and a similar index rose 0.3% with the support of the Mexican Bizo rise by 1.1%. Trump had written on the “Truth Social” platform that he had made a “fruitful” call with Mexico President Claudia Shinbaum on Wednesday.
Emerging markets benefit
“Emerging market currencies benefit from renewed hopes about the possibility of reaching solutions to trade differences between the United States and other regions,” said Juan Perez, a foreign exchange trader at Monox. He added: “The emerging markets will benefit strongly from the American administration with greater flexibility.”
But the Eastern European currencies declined compared to their counterparts, as the Hungarian Forent and the Czech Crue were among the worst performance.
Egypt and Turkey movements
Meanwhile, the Turkish Central Bank raised the re -purchase price for a week to 46% from 42.5%, in a sudden move aimed at reassuring investors after internal disturbances and fears of American customs duties that caused a wave of sale to the lira. The Turkish currency rose after the decision, and it was one of the best performances against the dollar on Thursday.
In Egypt, the central bank reduced the interest rate for the first time in nearly five years, as the interest rate reduced the deposit by 225 basis points to 25%. The Monetary Policy Committee also reduced the lending price with the same percentage to 26%.
