There were a lot of reasons to see markets pullback on Friday but most people were overthinking it. Once again Greece has been a sideshow and something that market players largely cannot get past the brinksmanship. We also had China raising margin requirements, and some other challenging headlines.
I always say you can’t have a proper rally in EM without China as they are effectively 20% of the index and a much bigger part of sentiment and cross over interest and flow into EM.
I care less about the EU stock markets reaction to Greece than I do the credit markets.
Emerging equities move higher as the Dollar collapses….An important breakout on the EEM and the spread move to SPY now 10% in 20days…
Despite weaker oil overall and recovery in Europe (sort of) Turkey has been one of the worst performing EM markets this year and has totally missed the recent EM rally, especially on the currency side. …And THAT is what makes Turkey an interesting “catch up “trade in the EM world:
Global Miners and Resource plays are on the move over the last month. Some are breaking out. Very few are noticing or paying attention:
Emerging Money Audio Call April 16 – Global markets are under a bit of pressure as US earnings season dives deeper but EM remains firm. On today’s call we again talk about breakdown in Dollar correlations and the impact on not just EM but global resource and mining place.
EIA out this AM saying crude oil output is to soar into 2020 so why are we trading higher on oil?
Emerging Money Daily Audio Call April 15 – On the call today we find global markets trudge higher but some major macro in our midst as we also look at the world form the ground up via US earnings season.
Emerging Money Daily Audio Call April 14 – On the call today we talk about key moves today in the Dollar and the Euro and what they mean for EM assets.