This is why emerging markets always gives your chance and why I don’t chase stocks.
Brazilian real (BZF, quote) unable to hold its gains after removal of the IOF tax. After being 1.4% higher this morning, the currency is almost flat. This lack of follow through on removing a tax that was major news when they announced it is disappointing but not surprising on both a Brazil level and an emerging market level overall.
After a very healthy buzz from the Bank of Japan (BOJ) spicket that drove its market up has Japan running into a buzz saw. Why? Well, last night Japan’s Prime Minister Abe was unable to truly outline fresh “Abenomics”.
The protests that started in Istanbul around the paving over of a park to replace it with a shopping mall, escalated quickly over the weekend to become a nationwide event. Protests spread to major cities in Turkey (TUR, quote) in the east and west, including Ankara.
U.S. ISM sub 50?
Looking at Turkey’s (TUR, quote) technicals we find the index down -9% today bouncing solidly at 200 day moving average in local currency terms but is well through the 200 day moving average in U.S. dollar terms.