|Day's Range||41.38 - 41.52|
|52 Week Range||28.98 - 43.04|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.64%|
The central bank in Turkey kept rates on hold Thursday, pointing to the end of a rate-tightening cycle. The iShares MSCI Turkey exchange-traded fund (TUR) slipped 1.2% in morning trading, while the iShares MSCI Emerging Markets ETF (EEM) fell 1.3%. Turkey's central bank has raised the average cost of funding by around 350 basis points this year and analysts largely expected that the central bank would keep the one-week repo rate at 8%, the overnight rate at 9.25%, and the late liquidity rate – the key rate for monetary policy – at 12.25%, notes Capital Economics Economist William Jackson.
Goldman Sachs is cautious about the near-term outlook for the U.S. dollar in light of inflation, and likes a handful of emerging market currencies. Zach Pandl and Kamakshya Trivedi at Goldman wrote the following ahead of the U.S. Federal Reserve open market committee interest rate increase Wednesday: " ... The bottom line on our constructive view on EM FX hasn’t really changed. As we argued last month, as an asset class EM FX is still modestly undervalued on our preferred valuation metrics, and in addition it continues to offer generous real carry (as declining inflation in many high yielders outpaces nominal rate cuts), and optionality to the ongoing upswing in EM growth.
Emerging market equities seem to be happy with the Fed, which raised interest rates by lifting its target for the Fed funds rate by 25 basis points 1% to 1.25% as expected Wednesday. The iShares MSCI Emerging Markets exchange-traded fund (EEM) rose after the decision, but then flat-lined. Countries that depend on foreign investment or have struggled to with their current account deficits cheered more, apparently in thanks for a not-higher rate: the iShares MSCI Turkey ETF (TUR) was up 1% initially, but was up 0.3% at 3 p.m.. The iShares MSCI South Africa ETF (EZA) was up 1.2%, but tempered that gain to 0.6%.