LONDON, – Emerging stocks fell 1 percent on Thursday, after four straight days of gains, and emerging European currencies mainly weakened after Chinese and European data unnerved investors.
Chinese stocks slid 1.4 percent after data showed China’s manufacturing sector contracted for an eighth straight month in June.
Germany’s private sector shrank for the second month running in June.
Global emerging equities retreated from one-month highs set in the previous sessio, reflecting disappointment that the U.S. Federal Reserve announced only limited expansion of monetary stimulus on Wednesday.
Most regional currencies fell, but hopes for IMF financial support helped Hungary’s forint after Budapest submitted new amendments to its disputed central bank law to parliament to implement changes agreed with the IMF.
The Turkish lira stayed close to the previous session’s five-week highs after the central bank left rates on hold but raised lira required reserves that can be held in forex and gold.
Index provider MSCI put Greece on review for a move to emerging market status late on Wednesday.
