A rocky beginning says Emirates NBD Outlook 2020 report – ZAWYA

A rocky beginning says Emirates NBD Outlook 2020 report – ZAWYA

Any volatility in oil could dampen con?dence among investors and a?ect the regional markets.. 2019 was a good year for all asset classes and emerging market debt was no exception.. A dominating factor remains the growth differential between emerging markets and developed markets, whereby emerging markets contributes to over two-thirds of global growth, along with strong demographics and consumption story.. Oil markets are at risk of a soft year in 2020 as anxiety over trade relations between the US and China continues, coupled with broader slowdown across the industry in developed and emerging markets.. The International Energy Agency expects growth in oil demand to improve in 2020 to around 1.2 million b/d from closer to the 1 million b/d last year.. Unlike 2019 when virtually all the demand growth was contributed by emerging markets, a recovery in OECD, Europe and Asian demand will drive developed markets to record a growth of about 300,000 b/d, suggested the report.. The global economy has surpassed a decade of more than 3 per cent growth, while bond yields are close to multi-year lows which also includes negative yields.. We expect Emerging Markets debt to deliver returns of 5 per cent to 5.25 per cent