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Data: Haver and IIF; Chart: Axios Visuals

Investors look to have rekindled their love affair with emerging markets in the first 2 months of the year.

What's happening: The dovish shift from the Fed and global central banks, and de-escalating China-U.S. trade tensions are bringing investors back to the asset class after a rough 2018 performance.

What they're saying: "These events look likely to restart a Wall of Money to EM and our high frequency flow trackers are picking up a sharp spike," Jonathan Fortun, an economist, and Tariq Khan, a researcher, at the Institute of International Finance, said of the organization's recent findings.

Details: EM securities attracted $26.3 billion of foreign capital in February.

After 5 consecutive months of outflows, IIF analysts estimate that net capital flows, including banking and foreign direct investment, to emerging markets was $20.9 billion in January.

  • In particular, large flows into South Africa ($16.4 billion) and India ($13.3 billion) were behind the surge in overall inflows.

Go deeper: Dove vs. More Dovish: Fed minutes reveal uncertainty on rate hikes

Go deeper

17 mins ago - Health

Fauci says U.S. may not return to normal until 2022

Director of the National Institute of Allergy and Infectious Diseases, Anthony Fauci, testifies during a September Senate hearing on COVID-19 in Washington, D.C. Photo: Graeme Jennings/Pool/AFP via Getty Images

NIAID director Anthony Fauci told the Journal of the American Medical Association on Wednesday he doesn't expect a COVID-19 vaccine to be ready until January 2021 or later.

What he's saying: Fauci said during the interview that the U.S. was in a "bad position" after failing to keep case numbers down post-summer. "We should have been way down in baseline and daily cases and we’re not," he said.

Hurricane Zeta makes landfall on Louisiana coast as Category 2 storm

A satellite image of Hurricane Zeta. Photo: National Hurricane Center/NOAA

Hurricane Zeta is "battering southeastern Louisiana and southern Mississippi with life-threatening storm surge, high winds, and heavy rain," per the National Hurricane Center.

What's happening: The hurricane was producing maximum sustained winds of nearly 110 mph and stronger gusts after making landfall on the southeastern coast of Louisiana as a Category 2 storm earlier Wednesday. By nightfall, Zeta had sustained winds of 80 mph with a wind gust of 104 mph.

Updated 1 hour ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Politics: Biden ahead in Wisconsin, Michigan as cases surge in the Midwest.
  2. Health: Trump's testing czar: Surge "is real" and not just caused by more testsMask mandates help control rise in hospitalizations Some coronavirus survivors have "autoantibodies."
  3. Business: Consumer confidence sinking Testing is a windfall.
  4. World: Europe faces "stronger and deadlier" wave France imposes lockdown Germany to close bars and restaurants for a month.
  5. Sports: Boston Marathon delayed MLB to investigate Dodgers player who joined celebration after positive COVID test.