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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
- EM financials (MXEF0FN Index), which have been under pressure this month, found support at 332.75 this week, which corresponds to their 200DMA and also the 76.4% Fibo retracement of the 223.80 – 366.10 range.
- We have seen that the USD strength combined with the selling pressure in the Chinese HY credit market amid Evergrande 'collapse' market have been weighing on EM risky assets in September.
- In the past two days, the slightly 'improving' situation concerning Evergrande payments in the coming week has led to a little rebound in EM risky assets. Next resistance to watch on the topside stands at 339.20 (100DMA).
- However, the drastic fall in Chinese real M1 money growth, the compressed term structure and the USD strength (as Fed taper nears) are three major factors that could continue to weigh on EM financials in the near to medium term.
- Key support to watch on the downside below 332.75 stands at 324 (July lows).
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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