Emerging markets suffered a nasty fall at the beginning of 2016. But this year, the MSCI Emerging Markets index has gained almost a tenth since 1 January, while its developed-market counterpart is up 5%. That’s the index’s best start relative to developed-market stocks since 2013. Global investors have become more confident, pouring $2.7bn into emerging-market funds last week, the highest weekly total for half a year.
Chalk it up to an improving global growth outlook, with the turn in the commodities cycle and an incipient recovery in world trade the most notable features. “In [...]