For the week from 2 to 8 June, according to EPFR Global, inflows to embed in the Russian market amounted to $80.3 mn, stated in the review of Sberbank CIB. The inflows marked the second week. Last week it was $18.0 million Previously EPFR Global noted a sharp outflow of funds, which reached its peak at the data for the week ended may 25. During this period, outflow has made $195,7 million It was the most significant outflow from August 2015.
Strategist at Sberbank Investment research Axon Cole notes that while this shift early to call the new trend. With him agrees the analyst Nordea Bank Denys Davydov. The inflow due to changes in expectations for fed funds rate (previously investors expected the fed to raise rates), says Axon that involves the weakening of the dollar and the concomitant rise in the value of assets in emerging markets.
Expectations on the movement of the rate has changed against the background of not the most good data on the U.S. labor market, says Davydov. However, such a sharp reaction to the revision of expectations regarding fed action tends to flatten, the result is a correction of the flow of funds, forecasts Axon.
However, investments in assets in countries such as Russia, Brazil and Indonesia are now less scaring investors risk of inflation, devaluation of national currencies and a sharp slowdown in economic growth, said Davydov. According to him, against Russia, investors are attracted to high yield debt instruments, as well as the relative cheapness of shares of companies of the first echelon. Largely formed was due to the positive dynamics of prices of primary assets, but so far in this area remains uncertainty, says Davydov.