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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- We recently saw that with growth expectations likely to be reviewed significantly to the downside, financial equities remain vulnerable in the short term despite their ‘cheap’ valuation.
- EM financials have been plunging this week, with the MSCI index breaking below its 340.10 support, which corresponds to the 23.6% Fibo retracement of the 254.50 – 366.60 range (and its LT upward trending support line).
- Next key support to watch on the downside stands at 323.75 (38.2% Fibo).
- EM financials are now down over 10% since their February high, and further hikes from EM policymakers (CEEMEA region) may not be enough to continue to support cyclical stocks.
- In addition, the sharp contraction in China real money growth has also been pricing lower EM financials in the past 6 months.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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