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Emerging Markets Surge on Ceasefire, Rate Cut Hopes

1/17/2025

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Story summary
  • Emerging market stocks increased by 1.1% due to expectations of US interest rate cuts and a ceasefire in Israel-Hamas conflict.
  • Israel's stock index reached a record high, although the shekel weakened amid military operations.
  • Fitch highlighted potential credit rating upgrades for Israel if regional stability is achieved.
  • Stable currencies and strategic rate cuts indicate positive economic recovery prospects in emerging markets.