Currencies slump on global growth fears; stocks mixed
* Weak data from Europe stokes fears for growth
* China stocks end flat before trade talks next week
* Fitch lowers 2020 growth forecast for India
By Agamoni Ghosh
March 22 (Reuters) - Emerging-market currencies fell on
Friday after weak data from Europe re-affirmed fears over global
growth, wiping out much of the support the Federal Reserve
provided earlier in the week with its accommodating monetary
German manufacturing contracted further in March and
economic activity slowed in France and the euro zone overall,
surveys showed on Friday .
MSCI's index for emerging-market currencies
fell 0.3 percent as eastern European currencies weakened.
"Risk sentiment is going to take a blow, a definite negative
for EM currencies, especially the eastern European ones," said
Jakob Christensen, chief analyst and head of EM research at
Today's data came with the prospects for a trade deal
between the United States and China looking uncertain after
Bloomberg reported that U.S. officials downplayed the chances of
an agreement. A trade delegation from Washington is set to visit
China on March 28-29.
Hungary's forint fell more than 1 percent against the
dollar, which local traders said was triggered by the German
numbers. The Polish zloty and the Czech crown also
The Turkish lira slumped more than .5 percent, with
steep falls on the BIST index. Russia's rouble fell 0.3
percent before a central bank meeting later in the day
that's expected to leave interest rates unchanged.
South Africa's rand fell marginally in subdued volumes
following a bank holiday.
In stocks, Asian shares gained, led by Shanghai and
Hong Kong. Indian shares slipped over 0.5
percent, after the ratings agency Fitch cut its 2020 growth
outlook for the country. Stocks in Johannesburg
fell for a third straight session.
For TOP NEWS across emerging markets
For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Agamoni Ghosh in Bengaluru, additional reprting
by Sandor Peto, editing by Larry King)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.