Foreign capital inflows to emerging market economies have significantly improved. Sentiment towards emerging markets improved significantly over November. Analysts say equities in emerging markets offer attractive valuations and considerable upside, particularly if the upswing in Chinese and Asian industrial activity continues to gather momentum.Read: Investec Chief Economist Annabel Bishop said in a note that economic activity will return to normal as vaccinations start in the UK.
Bishop said the economist commodities index shows prices rose by 25.3% year-on-year over November, 16.5% in October, and 13.8% in September, and a 15.2% price lift in July. This coming after a contraction over the first six months of the year. According to Nedbank, the rand is now effectively approaching its ‘fair’ value level. The bank said global forces are expected to be supportive of further rand appreciation, with rock-bottom interest rates in advanced countries.
The bank added that risk-on sentiment among global investors was the main driver of the rand’s continued recovery.
Nope
It will never shine in our lifetime.
It will weaken.