Volatile oil markets remain key....>

EMERGING MARKETS: Volatile oil markets remain key EMFX driver

-After surging as much as 20% Monday, WTI and Brent crude futures were in full

backtrack mode Tuesday, falling as much as 4% as Reuters reported that Saudi

Arabian oil output is to return to normal levels quicker than originally

thought, with the attacked oil installations likely back online within the next

2-3 weeks. The selling pressure going through in commodity markets resulted in a

relief rally for key importers (PLN, TRY), with petrocurrencies far more subdued

- RUB was one of the poorest performers.

-KRW may take focus at the open following the removal of Japan from South

Korea's trade whitelist - worsening the trade spat between the two countries.

KRW had already been one of the session's poorest performers ahead of the close.

ZAR trades poorly headed into CPI and retail sales data due Wednesday, although

more focus is likely being paid to the SARB rate decision Thursday.

-The Brazilian central bank decision takes focus Wednesday, with the BCB seen

trimming rates by 50bps to 5.5%.