Free Trial

Financials Testing Key 200DMA Support

EMERGING MARKETS
  • In the past two months, we saw that EM risky assets have been experiencing some selling pressure due to four major risks factors:
    1. Contraction in Chinese liquidity
    2. Rising uncertainty over the Delta variant
    3. Increasing political instability
    4. A rising US Dollar
  • This chart shows that EM cyclical stocks (financials) have been constantly retracing lower in the past two months, down 8% from their high reached on June 3.
  • MXEF0FN Index is currently testing a key support at 324.20, which corresponds to its 200DMA; a break below that level would open the door for a move down to 315.20 (38.2% Fibo retracement of the 254.50 – 352.70 range).

Source: Bloomberg/MNI

To read the full story

Close

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.