BofA warns Fed risks policy mistake with early rate cuts
Investing.com -- Investor concerns about U.S. trade policy and other global issues continue to fade, supporting robust inflows to most of the Europe, Middle East, and Africa (EEMEA) markets over the past few weeks, according to Bank of America.
Turkey stands as the only notable exception to the trend of strong capital inflows in the EEMEA region, the bank reports in its latest analysis of emerging market conditions.
Bank of America maintains its constructive view on emerging markets overall, referencing its May 23, 2025, report titled "How to stop worrying & learn to ’love’ EM," and remains particularly positive on EEMEA equities.
The bank believes the EEMEA region is well positioned to benefit from expected U.S. dollar weakness and emerging market policy responses, as detailed in its May 30, 2025, report "The EEMEA Equity Strategist: South Africa still at the top as global fears fade."
Consumer discretionary remains the main overweight sector in EEMEA, while information technology is the main overweight among global emerging market funds, with communication services continuing as the main underweight in both EM and EEMEA portfolios.
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