12 Jan 2015
EM update: Asian assets to outperform in the short-term – BBH
FXStreet (Barcelona) - The Brown Brothers Harriman Team shares the performance of the Emerging markets, expecting EM to continue to weaken and Asian assets to outperform in the short-term.
Key Quotes
“EM is starting the week facing several familiar cross currents. The dollar is strengthening again, oil prices are still falling, but equities are moving higher. This constellation seems to suggest a continuation of our call further weakness in EM, but for Asian assets to outperform in the short-term.“
“Yields also continue to come lower in several EM countries, including Poland, Hungary, Korea and Turkey. This is in part due to lower energy costs, but EM rates are also following yields down in major countries.”
“Looking ahead, we still see a bumpy road for EM, but also a deceleration of losses and some differentiation taking hold. Turkey and Mexico, are good candidates to lead the rebound, for example.”
Key Quotes
“EM is starting the week facing several familiar cross currents. The dollar is strengthening again, oil prices are still falling, but equities are moving higher. This constellation seems to suggest a continuation of our call further weakness in EM, but for Asian assets to outperform in the short-term.“
“Yields also continue to come lower in several EM countries, including Poland, Hungary, Korea and Turkey. This is in part due to lower energy costs, but EM rates are also following yields down in major countries.”
“Looking ahead, we still see a bumpy road for EM, but also a deceleration of losses and some differentiation taking hold. Turkey and Mexico, are good candidates to lead the rebound, for example.”