Franklin Templeton Investments
Public Site >Sign In  | Register
My Cart
My Cart Summary
Mandatory items may have been added.

<GAIN FROM OUR PERSPECTIVE>

Commentary

Find a Fund

By fund name, fund number, NASDAQ symbol or CUSIP

View All Funds

Asset Categories


Fund Families


Find Us

Follow Franklin Templeton

Emerging Markets Outlook

Title Speaker Date


Templeton Emerging Markets Overview, July 2015

Jul 31, 2015

Featuring:  Mark Mobius, Ph.D., Executive Chairman, Templeton Emerging Markets Group
 

  • A divergence in performance characterized global equity markets in July. US equities ended the month with positive returns, buoyed by supportive US economic data.
  • In Europe, although the month began with fierce debate over Greece’s debt situation and its membership of the eurozone, a last-minute deal in early July provided temporary relief, and sentiment was supported further by the European Central Bank’s continued bond-buying program.
  • Commodity prices ended the month lower, with the oil price recording a substantial fall.
  • The emerging market asset class underperformed its developed counterparts on concerns of a rise in interest rates by the US Federal Reserve, the sharp correction in China “A” shares, a decline in commodity prices and weakness in emerging-market currencies.
  • Asian markets lost ground in July, the most notable of which were China, South Korea, Thailand and Taiwan. Although intervention by Chinese authorities steadied equity prices somewhat, the MSCI China Index still ended the month with a double-digit decline on economic growth concerns and a lack of confidence in the “A” share market. Fears about China’s growth added to worries related to commodity prices and currency moves in a number of other emerging Asian countries.
  • In contrast, India’s market bucked the trend to record a small gain for the month, buoyed by news of capital infusions in the country’s banks, clarity on capital gains taxes and expectations of a rate cut by the central bank.
  • Latin American markets lost ground, with Brazil and Argentina ending July with double-digit declines, while Colombia and Peru also retreated. The Brazilian market was impacted by lower commodity prices, political concerns, weak economic data, an increase in interest rates and worries about a potential credit downgrade resulting in the loss of investment grade status.
  • Emerging European markets outperformed their global counterparts with Hungary and the Czech Republic ending July with positive returns.
  • Elsewhere, Russia’s market declined on lower oil prices and weakness in the ruble, while political concerns, increased violence on the Syrian border and a depreciating lira impacted stock prices in Turkey.
  • In the Middle East, the United Arab Emirates and Saudi Arabia reported gains.

Read More

View full story for details and footnotes | Print page

Important Legal Information

A note to our readers: Given the rapid changes that can take place in global markets, it is often difficult to provide up-to-date materials that address the most current situations. The following update is valid only as of July 31, 2015.

The significant growth potential offered by emerging markets remains accompanied by heightened risks when compared to developed markets, including risks related to market and currency volatility, adverse social and political developments, and the relatively small size and lesser liquidity of these markets.

The information provided is not a complete analysis of every material fact respecting any country, industry, security or investment. Opinions expressed are those of Dr. Mobius and are subject to change without notice. Statements of fact have been obtained from sources considered reliable. Because market and economic conditions are subject to rapid change, his analyses are valid only as of July 31, 2015. His opinions are intended to provide insight as to how he analyzes securities and are not intended as individual investment advice. Performance information is historical and should not be considered predictive of future results. All securities investments fluctuate and involve risks.

Investors should carefully consider a fund’s investment goals, risks, charges, and expenses before investing. To obtain a summary prospectus and/or prospectus, which contains this and other information, talk to your financial advisor, call us at (800) DIAL BEN®/342-5236, or visit franklintempleton.com. Please carefully read the prospectus before you invest or send money.

You need Adobe Acrobat Reader 6.0 or higher to view and print PDF documents. Download a free version from Adobe's website.




    For US residents only.