Macro: Recovery continues
- Over the past month there have been increasing signs that the global economy is recovering, especially in the manufacturing sector worldwide, but also in most Emerging Markets (EM). (see Global Scenarios)
Rates and yield: Fixed income rally continues
- EM rates and yields have continued to decline over the past month although Poland and Indonesia are significant “outliers” with increasing concerns regarding the outlook for public finances in Poland driving its yields higher.
FX: Dollar weakness weigh on LATAM and Asia currencies
- Despite the continued rally by EM fixed income and equity markets over the last month the FX market situation has differed. Continued USD depreciation has been a major theme, exerting downward pressure on dollar-sensitive Asian and LATAM currencies. The South African rand has clearly been the market’s star performer, continuing to rally on higher gold prices...
