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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 little rebound on cyclical equities (i.e. banks) has been limited in the past two weeks despite the USD consolidation as global outlook keeps worsening.
- EM Financials are down nearly 15% since their January high, with the MSCI Financial index (MXEF0FN) currently trading slightly below the 320 level after finding support below the 38.2% Fibo (312 level).
- Even though financial equities appear moderately to extremely ‘cheap’ in most of the EM economies, the risk of another significant drawdown in the near term remains elevated, particularly if the US Dollar starts to shoot up again.
- The lack of visibility and convictions in markets could lead to another ‘risk off’ environment amid surging stagflation risks in most of the DM and EM economies
- In addition, real China M1 growth is still pricing in cheaper EM cyclical stocks in the near to medium term.
- Next key support to watch below 312 stands at psychological level 300.
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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