Translation: Morgan Stanley said that after the US midterm elections, reasons to look bullish on emerging markets are piling up. Brent crude oil is expected to record its biggest weekly decline since April 2020, bringing benefits to many energy-importing developing countries. An emerging market strategist at Morgan Stanley wrote in a research report on Friday that the increased probability of resolving the Middle East conflict may benefit the global bond market and emerging market currencies. Morgan Stanley believes that lower oil prices are expected to drive lower yields on local currency bonds and narrow credit spreads in emerging markets. The strategist said, “Lower oil prices will also ease inflationary pressure while improving trade terms in most energy-importing emerging markets.”

Translation: Morgan Stanley said that after the US midterm elections, reasons to look bullish on emerging markets are piling up. Brent crude oil is expected to record its biggest weekly decline since April 2020, bringing benefits to many energy-importing developing countries. An emerging market strategist at Morgan Stanley wrote in a research report on Friday that the increased probability of resolving the Middle East conflict may benefit the global bond market and emerging market currencies. Morgan Stanley believes that lower oil prices are expected to drive lower yields on local currency bonds and narrow credit spreads in emerging markets. The strategist said, “Lower oil prices will also ease inflationary pressure while improving trade terms in most energy-importing emerging markets.”