* Biden-Putin meet to start at 1100 GMT<\/p>\n
* Lira perks up after two bruising days<\/p>\n
* Other EM FX muted ahead of Fed<\/p>\n
* MSCI EM stocks index set for worst session in 4 weeks<\/p>\n
June 16 (Reuters) – Russia\u2019s rouble snapped a four-day losing streak on Wednesday, boosted by higher oil prices and hopes that an upcoming meeting between the Russian and U.S. presidents could help improve severely strained ties between the two nations.<\/p>\n
The currency was up 0.2%, just before an 1100 GMT meeting of U.S. President Joe Biden with Russian counterpart Vladimir Putin in Geneva. They are expected to discuss arms control, cyber-hacking and election interference and then hold separate news conferences.<\/p>\n
\u201cWe think it likely that we will receive a number of constructive headlines in terms of a friendlier framework for future discussion,\u201d said Commerzbank analyst Tatha Ghose said.<\/p>\n
Biden\u2019s meeting earlier this week with Turkish President Tayyip Erdogan failed to generate any positive breakthroughs, but Ghose said the stakes were higher for Wednesday\u2019s meeting because the risk premium on Russian assets was down primarily to U.S. sanctions and the potential for more.<\/p>\n
\u201cThe risk scenario would be a breakdown in talks, in which case those same sanctions would soon re-invoked, along with other new sanctions,\u201d Ghose added.<\/p>\n
Geopolitics weighed on emerging markets more broadly too – MSCI\u2019s emerging equity index was headed for its worst session in a month, led by a sharp drop in Chinese shares.<\/p>\n
China\u2019s blue-chips index marked its worst session in two months, having lost 3.5% over the last three days due to increasing tensions with the West over human rights, Hong Kong\u2019s autonomy and the origin of the coronavirus pandemic.<\/p>\n
But Turkey\u2019s lira which lost more than 2% over the last two sessions after the disappointing Biden-Erdogan meeting, firmed 0.6%. The central bank\u2019s Thursday meeting is expected to keep interest rates at 19%, pushing cuts to the fourth quarter.<\/p>\n
Other emerging market currencies was flat marked time ahead of the U.S. Federal Reserve\u2019s policy decision due at 1800 GMT, followed by Chair Jerome Powell\u2019s news conference..<\/p>\n
Fed officials are expected to at least flag the pending start of talks about exiting ultra-accommodative crisis-era policies. Hawkish signals could strengthen the dollar, hurting emerging markets.<\/p>\n
Fed uncertainty, geopolitics and election-linked volatility in Latin American countries such as Peru have pushed up emerging currencies\u2019 implied volatility – a gauge of expected swings in an asset\u2019s price.<\/p>\n
For GRAPHIC on emerging market FX performance in 2021, see tmsnrt.rs\/2egbfVh For GRAPHIC on MSCI emerging index performance in 2021, see tmsnrt.rs\/2OusNdX<\/p>\n
For TOP NEWS across emerging markets<\/p>\n
For CENTRAL EUROPE market report, see<\/p>\n
For TURKISH market report, see<\/p>\n
For RUSSIAN market report, see<\/p>\n