Ethanol prices in Brazil are at their highest levels since August of the 2013 and demand for ethanol from the US is driving greater interest in Brazil’s
Daily Conference call for March 6. Emerging markets open 1% higher. In today’s call we review what PMI’s around the world mean for the metals. Tune in to for strategies for Asia and find what which region is poised for a spring rally on fresh policy moves and much more.
Copom will meet tomorrow to decide on the next hike (25bps expected) and hopefully sound less hawkish now that they have gotten a little distance on inflation but helped the “real rate” profile.
That is the statement I heard from a wise man said to me today. So simple, yet the torrent of sentimental rain upon emerging markets for the last few weeks has seemed as if casual observers are throwing in the towel.
The Emerging Money EM FX Basket (EMFXB) is a GDP weighted index comprised of the eight most volatile primary currencies in EM.
Those EM “have’s” with exposure to either falling commodities, current account issues, political turmoil, or all of the above, are taking down all EM countries, even those who do not have (“have not”) the same exposure to such factors.
EM down 5% since the surprise China PMI contracting print.
While printing 74K on Non-Farm Payroll report (NFP) today in the U.S. gives a temporary momentum boost to flagging spirits in emerging markets, it is not worth discussing other than in the context of what is moving markets today.