EM FLOW FUNDAMENTALS - Another mixed picture from EM fund flows

• Bloomberg ETF fund flows data for the week ending Friday 21st February paints a mixed picture for Emerging Market sentiment.
• EM Equity ETFs remained in the negative territory this week, tallying up a net outflow of USD2.128bn, up from last week’s USD3.26bn outflow tally.
• Meanwhile, EM Fixed Income ETFs remained in the green for a second straight week, printing a net inflow of USD164mn, albeit down from last week’s USD301mn inflow tally.
• The MSCI EM Currency Index fell as low as 1748 this week, before spiking to an over 3-month peak of 1755 on Thursday. This, after Trump toned down his tariff threats this week, although he did note a trade deal with China is still "possible". Instead, his attention has been on the Russia-Ukraine war, which has heavily weighed on EM.
• Looking ahead into next week, the NBH will meet on Tuesday, where they are expected to hold rates steady at 6.50%. South African January CPI is due on Wednesday. Turkey and Czech Republic Q4 GDP is due on Friday. Otherwise, there is a raft of Fedspeak scheduled next week.

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