MSCI EM hits 20-month high on Thursday

Mexico, Asian and central European bourses led the MSCI Emerging Markets Index toa 20-month high on Thursday and its best one-day gain since last July as EM shrugged off the US Federal Reserve’s rate hike, the Financial Times reports. Be careful about unbridled optimism, though: “Emerging market equities in particular have tended to struggle when the USD is strong, so another key test may face this asset class if the Fed keeps raising interest rates through 2017 and beyond,” said Russ Mould, investment director at AJ Bell.