Markets rally as euro-zone fears recede

This is the first edition of our new monthly Emerging Europe Markets Monitor. The purpose of this publication is to analyse the developments in local markets over the past month and give an update on our key forecasts.

Equity markets in Emerging Europe have rallied since the start of the year as fears of a re-escalation of the euro-crisis have eased. Looking ahead, favourable global sentiment means that we think there is some, albeit limited, room for further gains in stocks this year. But the same cannot be said for the region’s currencies, which we expect to weaken against the euro.