Emerging markets are set to end the first quarter of 2016 with strong gains, something few investors would have bet on in January, after the sector’s worst start to a year on record.
As this graphic shows (reut.rs/1ZKAaO6), emerging market stocks, currencies and bonds fell in the first few weeks of 2016 as oil prices slumped, China’s economic growth faltered and interest rates in the U.S., and therefore the world, rose from record lows.
The rout left MSCI’s benchmark EM equity index down 14 percent by the time it bottomed on Jan. 21. Bond market selling drove government bond spreads – a rough reflection of borrowing costs – up over 18 percent.
The recovery began with oil, as winter hit the United States, China threw stimulus at its economy and the Federal Reserve rolled expectations for interest rate increases.
Brazil Energy Insight 
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