The second week of April offered investors two data points, the latest US jobs report and the inflation numbers for Match, that they hoped would make the case for a pause in the Federal Reserve’s tightening cycle. Although headline inflation in March came in at a one-year low and the number of new non-farm jobs created was the least in over two years, investors were left hoping that the Fed will focus on the trends rather than the actual, positive numbers.
In this week’s video, EPFR’s Steve Muzzlewhite takes a look at LATAM bonds and fund flows, and analyses trends in Argentina, Brazil and Mexico.
Flows into EPFR-tracked Emerging Markets Equity Funds during the third week of January climbed to their highest level since mid-1Q21 as investors positioned themselves for China’s much anticipated economic rebound and, the anti-inflation rhetoric of the Federal Reserve and European Central Bank (ECB) notwithstanding, an early end to the current interest rate cycles in the US and Europe. Investors also steered $2.5 billion – a 101-week high – into Emerging Markets Bond Funds.
Skyscrapers are always a good indication of growth in a country. For instance, Mirante do Vale is a vast office building built in 1960 in downtown São Paulo, it used to be the tallest building in Brazil until 2014, when the Millennium Palace in Balneário Camboriú, Santa Catarina took over its place.