Bank of America: emerging markets may welcome large inflows of funds early next year

BofA said emerging markets were likely to see larger inflows early next year as signs grew of resilience in emerging economies, which would drive a further shift away from US assets. "People will become more optimistic early next year as they confirm that the economic impact of trade tensions will be limited," said David Hauner, head of global emerging markets fixed income strategy at BofA. "Even small, diversified flows from the US could have a very significant effect." Hauner has maintained a bullish stance on emerging markets since Quarter 1. He believes the asset class will benefit from a weaker dollar, the scope for further rate cuts by central banks and the historic underweight of global funds to emerging markets. Brazil, Mexico, Colombia, Turkey and Poland will be the main beneficiaries of foreign inflows, Hauner said.