* Poland's incumbent Duda wins presidential election
* Investors eye start of U.S. earnings season
* Turkish industrial production shrinks less-than-expected
July 13 (Reuters) - Emerging market risk assets started the
week on a strong footing on Monday, with investors turning their
focus towards the beginning of the U.S. corporate earnings
season, while Poland's zloty edged higher after Andrzej Duda won
the country's presidential election.
Market participants are optimistic that U.S. companies will
beat already lowered expectations, with big banks JPMorgan
, Citigroup, and Wells Fargo reporting on
"I expect that trading revenues will outperform once again
as market volatility continues," said Jeffrey Halley, senior
market analyst, Asia Pacific at OANDA.
"More attention is likely to be given to the big banks'
forward guidance on the global economy, and the level of bad
Assets in emerging markets have risen sharply since a
selloff in March, but have remained in a holding pattern for the
last couple weeks due to a lack of market drivers and caution
over the rising number of COVID-19 cases worldwide.
Analysts also suggest that monetary policy, which was a key
driver of the market recovery so far, will gradually lose
influence to the earnings outlook.
MSCI's index for emerging market stocks rose 0.7%,
while its currencies counterpart index gained
Shares in the developing world also got a boost from a
positive reading on a potential COVID-19 treatment as an
analysis from Gilead Sciences Inc on Friday showed its
antiviral remdesivir helped reduce the risk of death in severely
In Poland, incumbent candidate Andrzej Duda won the
presidential election, according to majority results, the
National Electoral Commission said on Monday. The zloty
made small gains against the dollar, while Polish
stocks rose 0.6%.
"With Duda holding on to power, Polish politics will retain
its status quo for now the prospect of a new era in politics
is receding. For the zloty, this outcome is relatively positive
as the market tends to prefer continuity over uncertainty," said
Tatha Ghose, FX and emerging markets analyst at Commerzbank.
Among other emerging market currencies including the Russian
rouble, Turkish lira and South Africa's rand
, all rose against a weaker dollar.
Data from Turkey showed some signs of relief as industrial
production shrank less-than-expected in May.
For GRAPHIC on emerging market FX performance in 2020, see http://tmsnrt.rs/2egbfVh
For GRAPHIC on MSCI emerging index performance in 2020, see https://tmsnrt.rs/2OusNdX
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For CENTRAL EUROPE market report, see
For TURKISH market report, see
For RUSSIAN market report, see
(Reporting by Shreyashi Sanyal in Bengaluru; Editing by