Emerging markets: Is it too early to call an inflection point?

Defensives underperformed in H1

Emerging market equities experienced a somewhat changed environment in the first half of 2016. Some of the more defensive sector companies, which had led markets for a long time, underperformed while some more economy-sensitive industries were relatively strong, writes Lazard's James Donald.

The MSCI EM index rose by 17.3% over the first half with Asian markets declining marginally while eastern European markets went up 10% and Latin American markets climbed by almost 23%. The period included important events such as Britain's EU referendum vote, attempts at renminbi devaluation in China and presidential impeachment in Brazil. Emerging markets: Why investors need to err on the side of caution Coming into 2016, commodity and oil prices had fallen significantly as signs that the Chinese economy was slowing. Large growth in Chinese consumption of commodities between 2001 ...