Emerging-market assets are so cheap that they may be “the trade of a decade”, according to Christopher Brightman, chief investment officer at Research Affiliates (Pimco). Brightman said that EM stocks and bonds appeared cheap relative to historic price action as well as alternatives.
For much of the past 12 months, the volatility in China’s capital markets has captured investors’ attention. From a macroeconomic perspective, Morgan Stanley Asia Limited experts think that the following […]
Standard & Poor’s downgraded Brazil’s credit rating deeper into junk territory on Wednesday, citing its failure to curb its fiscal deficit, in a surprise blow to President Dilma Rousseff`s bid to haul the economy out of its worst recession in decade
The markets entered 2016 on a pessimistic note. Their mood has deteriorated further. Alongside well known uncertainties (oil, China, Fed), concerns have now emerged that the banking and financial sector will suffer a wave of defaults (by companies or even oil states), leading it to stem the flow of credit to the economy. Economic growth, already….
Supply of highly rated “safe” assets has stabilised and official sector demand is in decline, consistent with falling FX reserves.
The prospect of an economic meltdown in China has been sending tremors through global financial markets at the start of 2016. Yet such fears are overblown. While turmoil in Chinese equity and currency markets should not be taken lightly, the country continues to make encouraging headway on structural adjustments in its real economy. This mismatch between progress in economic rebalancing and setbacks in financial reforms must ultimately be resolved as China now enters a critical phase in its transition to a new growth model. But it does not spell imminent crisis.
Markets rebound! Oil and Draghi pull equities off their lows
On November 30, the Executive Board of the International Monetary Fund (IMF) has approved a recommendation to include the Renminbi in the basket of currencies that compose the SDR (Special Drawing […]
