Stock market news today: EM stock indices broke a 3-day sell-off and strengthened on Tuesday, helped by a rebound in the Chinese market after the Central Bank promised more measures to stimulate the economy hit by new outbreaks of COVID-19.

The MSCI Emerging Market Index (.MSCIEF) rose 0.1% after falling nearly 3% in the past three sessions. The MSCI Emerging Markets Currency Index (.MIEM00000CUS) was down 0.1%.

Stock market charts – what’s going on? 

Emerging market stocks are down more than 21% this year, the worst year so far since the 2008 crisis, while EM currencies have lost 6% as markets face tighter financial conditions, slower growth, and increased recession risk.

The South African rand held steady at 17.15 rand against the dollar ahead of the release of second-quarter GDP data.

Gripped by worries about the impact of Russia’s disruption of gas supplies through the Nord Stream pipeline. Central and Eastern European currencies remained under pressure.

The Czech krone appreciated 0.27% and the Romanian leu held its ground against the euro. The zloty gained 0.11% in anticipation of the Polish Central Bank’s decision on Wednesday.

While the consensus forecast points to a 25 basis point rate hike, there is a risk of a larger increase given rising inflation in Poland. Also in focus is the Chilean central bank’s interest rate decision later Tuesday.

The Philippine core inflation rate has slowed for the first time this year. but higher core inflation and a weak currency are likely to prompt further interest rate hikes – the Philippine peso is down 0.24% for those reasons.

Earlier we reported that the dollar is declining against the euro and the pound, and is expensive against the yen.