Emerging Money Daily Audio Call March 5 - On today's call we highlight outperformance of Europe and a rebound in global markets today despite Dollars strength that's pushing EM currencies to the brink.
As a result EM struggles to move higher and presses lower on the EM/DM spread. We believe commodity prices are showing more resilience than EM currencies and this makes sense to us based on fundamentals and historic price action for spot commodities.
On currencies, we watch trading Russia below 62 rubles to the dollar where we think Russia can continue to outperform. We upgraded turkey and Brazil in our EMCAI Index (country allocator index) yesterday and today that looks painful but we remain bullish on the 1-3 month improvement in macro sentiment in both countries, even if real structural change will take longer.
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