Emerging Markets

The week began subdued for EM, but selling pressures continue for the most part.  The dollar is mixed against majors and with the decision about the timing of the first Fed hike still up in the air, it’s hard to...

Positive momentum for EM assets looks to extend its moves from last week.  Buoying EM sentiment is gains in developed markets equity indices, the weaker dollar more broadly, and gains in the commodity space.  Regarding the latter, we note that...

1) The Brazilian central bank had a record monthly loss on its FX swap operations in September, 2) Also in Brazil, the impeachment process got a step closer, 3) Indonesia cuts energy prices and electricity tariffs for the industrial sector,...

EM is starting the week on a positive footing.  Aside from the recovery in global risk appetite, the uptick in commodity prices and the broader weaker tone in the dollar, we think the price action in Brazil has helped EM...

1) Colombia’s central bank unexpectedly hiked its policy rate 25 bp to 4.75%, 2) Mexico extended its FX auctions, 3) Petrobras raised prices for gasoline and diesel for the first time in almost a year, 4) China’s central bank cut...

There are 195 sovereign states, according to the United Nations, and two, “observer states” (Vatican and Palestine).  The high income countries in North America, Western Europe and Asia-Pacific account for about 15% of the sovereign states.  Most of the rest...

The end of a horrendous quarter of equities and emerging markets is generating a sigh of relief that is helping lift those battered markets.  The MSCI Emerging Market is up almost 1.75% prior to the open of the Latam markets. ...

In a still familiar refrain, EM assets are starting the week off on a soft note.  The global backdrop remains negative, with Yellen’s speech bringing Fed lift-off back into focus.  US jobs data this Friday should support the notion of...

Once again, EM assets are starting the week of on a soft note. Once again, EM assets are starting the week of on a soft note. This is not just any week, however, not with the FOMC looming.  The Fed’s...

In a familiar refrain, EM assets start the week on a soft note, with markets picking up where the left off on Friday. With China markets reopening after a two-day holiday, the Shanghai dropped -2.5% and has fed into wider...

1) Reports suggest the PBOC will impose a 20% reserve requirement on financial institutions trading FX forwards, 2) The HKMA had to intervene this week at the strong side (7.75) of the HKD peg, 3) Swiss authorities are getting involved...

Back in 2001, former Goldman Sachs chief economist Jim O’Neill coined the acronym BRIC to highlight the immense economic potential of the emerging markets of Brazil, Russia, India, and China in the decades to come. They would be the economic...

EM is starting the week with a weak tone, though the panic of last week has abated for now.  The bounce in commodity prices seems to have run out of steam, which is not helping market sentiment.  Fed Vice Chair...

1. Turkey has formed an interim government, but the AKP is slipping in the polls.  2. The South Africa Reserve Bank (SARB) is debating FX intervention, but sending confused messages.  3. Korea steps up its rhetoric to contain market volatility...

It is a bitter start of the week for EM. It is hard to imagine either stabilization or meaningful differentiation in EM until asset prices in major markets find a bottom. In addition, the second leg down in commodity prices...