World capital has begun to shift to emerging market assets again. Judging from the inflow and outflow of stocks and bonds, May may be the first positive growth in 8 months. Brazilian stocks and others are hovering in the high point area. Taking the tariff policy of the Trump administration in the United States as an opportunity, the trend of capital transfer outside the United States has started, and emerging market countries have also become an option. The expectation of a temporary pause in the appreciation of the US dollar and the expectation of central bank interest rate cuts are attracting investors’ attention.
The Institute of International Finance (IIF) counts the extent to which non-resident (overseas investors) funds are invested in stocks and bonds in emerging market countries every day, and uses it as one of the indicators to measure market psychology. As of May 22, there was a net inflow of US$10 billion. If it remains positive by the end of the month, it will be the first time since September 2024 when the Federal Reserve (FRB) decided to cut interest rates after a lapse of 3 and a half years.
