### POV: EMERGING MARKET CONCERN WEIGH.....>

EQUITIES: ### POV: EMERGING MARKET CONCERN WEIGH

While better than expected US earnings helped push equities to near last Oct

all-time highs this week, market focus on emerging market stocks and currencies

has tempered the rally today. Note, however, that Tsy and Eurodollar futures are

trading weaker, short end outperforming as rate CUT probability remains near

recent highs (Sep cut near 45%; or Dec close to 75% if no action until year

end). Pulling together loose threads to explain latest weakness in equities:

* Eyes on Turkey, Lira (TRY) went parabolic earlier after their central bank

left rate on hold, removing pledge of further tightening if needed. Turkey --

which apparently sees a lot of fast$ cross/fx action -- is also the poorest

performer among EMFX today.

* Headline that Raffaisen sees prob of Italy ratings downgrade by S&P at 50%

added pressure to eq's.

* Closer to home: Well off late 2018/early 2019 highs, CDX IG credit index has

been climbing higher last couple sessions amid chatter of rising corp and

private debt servicing.