(Updated at 0923 GMT)
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Report: Polish cenbanker says March rate cut could be possible
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Russia stages first missile attack on Kyiv since August
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Morocco bourse ready to launch derivatives market
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Starlink working on Indian security clearance for broadband
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MSCI EM stocks index down 0.7%, FX flat
By Johann M Cherian
Nov 13 (Reuters) - An emerging markets stocks index fell to levels seen two months ago on Wednesday, with Indian equities flirting with correction territory, while investors awaited U.S. inflation data and weighed the implications of Donald Trump in the White House.
MSCI's emerging markets stocks index lost 0.7%, while a currencies gauge hovered near three-month lows, with the greenback at multi-month highs.
Inflation in the U.S. has shown signs of improving recently, however any positive surprises could spark uncertainty on the Federal Reserve's outlook for monetary policy easing next year. The latest data is due at 1330 GMT.
Emerging market assets have been under pressure as the dollar and Treasury bond yields have soared since Trump's win in U.S. presidential elections.
With Republicans looking set to control both houses of Congress, Trump's policies around lower taxes and higher tariffs could meet little resistance, which analysts say could fuel inflation and further boost the dollar.
Meanwhile, India's Nifty 50 hit a five-month low and was set to close 10% below its record high hit on Sept. 27, pressured by dull earnings, foreign investor selling and anxiety around no signs of inflation moderating.A 10% drop in value of a stock index is referred to as market correction.
Separately, the telecoms minister said Elon Musk's Starlink is seeking security clearance for a licence to offer satellite broadband services in India.
Moroccan stocks climbed 0.4% and have gained over 20% so far this year. The local government said the stock exchange is ready to launch a derivatives market which allows trading in equity futures.
"The strong performance of Morocco's stocks and its deep internal captive institutional investors have increasingly attracted international investors," said Zin Bekkali, founder of Silk Invest.
"We further increased our overweight position... as we believe it could be one of the potential winners from global trade changes during a Trump administration."
In central and eastern Europe, Poland's zloty and bond yields were flat against the euro. A report showed central banker Cezary Kochalski saw a possibility of interest rates to be lowered in March 2025.
Hungary's forint inched up 0.2% but was close to a 23-month low. Strategists and fund managers expect Trump's victory to be bad news for the domestic economy on the side of inflationary risks due to a weak forint and lower output due to possible tariffs on Europe's auto sector.
Ukraine's hryvnia edged up 0.3% against the euro. Markets monitored Russia's first missile attack on the country's capital Kyiv since August.
The hryvnia has risen in the aftermath of Trump's win and is now at over four-month highs on expectations that the president-elect could seek an end to the conflict sooner.
The rouble was flat ahead of Oct inflation data expected later in the day.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For GRAPHIC on emerging market FX performance in 2024 For GRAPHIC on MSCI emerging index performance in 2024 India's Nifty drops 10% from all-time high levels hit on Sept. 27
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(Reporting by Johann M Cherian in Bengaluru; Editing by Sharon Singleton)
((johann.mcherian@thomsonreuters.com;))
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