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Investing.com - Bank of America maintains a constructive outlook on Eastern Europe, Middle East, and Africa (EEMEA) equities despite renewed tariff headlines and potential secondary sanctions against Russian oil this month, according to a research note published Thursday.
The market has largely shrugged off these concerns, with inflows to EEMEA equities continuing during the month to nearly all markets in the region with occasional exceptions, the bank reports.
While BofA expresses caution about possible risks from U.S. policy to emerging market growth, it remains positive on the region overall, citing a robust regional growth outlook, especially in an environment with a weaker U.S. dollar.
Consumer discretionary remains the main overweight sector in EEMEA, which differs from information technology being the main overweight among global emerging market funds, according to the bank’s July 18 report titled "Global Emerging Markets Weekly: A speed breaker, not red light."
Communication services continues to be the main underweight sector in both emerging markets broadly and EEMEA specifically, the bank notes in its research.
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