EM vs DM: Emerging Markets yesterday kissed their lows again the SPX going back through the crisis, even including a spike down when EM “bottomed” first in the Fall of 2008.
We warned you a few days back on Trading the Globe to watch currency volatility as a read on the next market move. It looks like that canary in the coal mine is squawking today.
The zloty (PLN) is down 1.7% this morning. South Africa’s rand (ZAR) is 46 basis points weaker despite news that local interest rates are not going lower any time soon. The Turkish lira (TRY) is down 91 basis points.
Europe remains the core of a lot of the uncertainty out there, so the C3 countries in particular (Poland, Hungary, the Czech Republic) should keep dancing the anxiety line for some time to come. Watch them for hints on the euro: