• Emerging-market equities and currencies edged lower on Monday ahead of a week packed with key economic data and rate decisions at major central banks that will test the market’s optimism for easing monetary policy in the US in 2024.
• MSCI’s index for developing nation stocks trimmed losses after falling as much as 0.9%, while the gauge of currencies fell 0.3%, the lowest level since Nov 17 on a closing basis.
• The US CPI report will be released on Tuesday, a day before the last scheduled Federal Reserve decision of 2023. Options traders have begun raising their expectations of currency swings in anticipation of the two events. The JPMorgan Emerging Market Volatility Index is hovering around its highest levels in a month.