Free Trial
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
- The significant deceleration in the Chinese economic activity, strong momentum on the USD amid elevated uncertainty and more recently the deterioration in the Russia/Ukraine conflict have been weighing on EM equities in the past year.
- EM equities (MXEF index) are now down nearly 25% since their February 2021 peak, erasing 50% of their post-Covid gains.
- On the other hand, the elevated inflationary pressures have been supporting commodities, with the CRB RIND Index constantly reaching new all-time highs and up nearly 70% since its April 2020 low.
- This chart shows the significant divergence between EM equities and raw industrial commodities in the past year after co-moving strongly in the past 30 years.
- As many emerging markets are relaying on commodity exports, periods of rising commodity prices have generally been associated with trending EM equities.
- However, the rising uncertainty due to surging inflation combined with strong USD due to slowing global growth have been the major (negative) factors for EM risky assets.
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok