Emerging Money Daily Call Preview June 10 – on today’s call were given you fresh updates in the fertilizer that’s been long and profitable and we actually think the fundamentals are improving.
As Emerging Markets push near one year highs, we wanted to refresh our core views on markets, outlook and risks.
As we see the US emerge from the winter hibernation (Retail Sales, Industrial Production, Jobless Claims), we are also seeing signs of Emerging Markets recovery on Macro.
Emerging Market Funds, both dedicated and ETFs, have now strung together two consecutive weeks of inflows for the first time in 6 months.
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.
DXY index is off -85bps in afternoon trading, but that doesn’t mean the USD strength devastation is not being felt across the world.