EM FLOW FUNDAMENTALS - EM ETF fund flows paint a mixed picture following a volatile week

• Bloomberg ETF fund flows data for the week ending Friday 8th November paints a mixed picture for Emerging Market sentiment.
• Following two consecutive weeks of outflows, EM equity ETFs returned to positive territory this week, posting a net inflow of USD79mn, up from last week’s outflow of USD2.2bn.
• Moving over, fixed income ETFs remained in negative territory for a third straight week, down USD774mn, with ‘Not Classified’ the sole loser, down USD948mn.
• Switching over to EM, the MSCI EM Currency Index fell to an over 2.5mth low of 1749.85 on Wednesday, as investors cut risk appetite ahead of the elections. The Index has since bounced back up to 1760 on Thursday.
• Still to come on Friday is the NBR rate decision, where policymakers are expected to leave borrowing costs unchanged at 6.50%, due to persistent concerns around the EU’s largest budget deficit. Looking ahead, next week’s focus will be on the US CPI print (November 13) to reveal a stall in inflation and for retail sales (November 15) to show the impact of the hurricanes. In EM, we’ll receive a bunch of CPI prints from the CEE region, Polish 3Q GDP and observe Banxico’s policy meeting.

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