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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
- The significant deceleration in China economic activity in the past year combined with the strong US Dollar in H2 2021 due to the surge in global economic and political uncertainty have been weighing on EM equities.
- The MXEF Index is down over 15% since its peak reached in February 2021 and has been constantly testing lower highs since then, indicating that the bearish momentum remains firm.
- The chart below shows that the index is currently trading back to its Q2 2011 levels, and gave up nearly 40% of it gains following the Covid shock that were mostly attributed to the titanic rise in global liquidity.
- With China keeping its zero-Covid policy and investors pricing in a hawkish pivot by the Fed, EM equities remain vulnerable in the short even though some EM equity markets currently appear moderately to significantly ‘cheap’ relative to some DM markets.
- More than 5 hikes are now priced in for 2022 according to the futures market.
- ST support to watch on the downside stands at 1,182.90, which represents the 38.2% Fibo retracement of the 751.80 – 1,449.40 range.
Source: Bloomberg
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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