Emerging Markets Steady Amid Anticipated Rate Decisions

Emerging market stocks began November with a slight uptick as investors anticipated key interest rate decisions in Central and Eastern Europe. MSCI's index for regional equities rose by 0.6%, building on modest gains from the previous month largely driven by expectations of a U.S.–China trade agreement and Federal Reserve rate cuts.

Conversely, emerging market currencies saw a minor decline, with Poland's zloty weakening due to the possibility of an imminent rate cut following subdued inflation data. The National Bank of Poland has cut its rates by 125 basis points in 2025, with further easing hints from bank chief Adam Glapinski.

Manufacturing data showed mixed signals, with Poland experiencing a slower decline and Czech manufacturing contracting more sharply. Political factors, such as Andrej Babis' electoral victory in the Czech Republic and Hungary's upcoming elections, further sway economic outlooks in the region. Meanwhile, Hungary's Prime Minister Viktor Orban is set to meet with U.S. President Trump seeking exemptions on Russian oil sanctions.