"A reminder on Thursday from Goldman Sachs that emerging market assets are still in for some bumpy times ahead.
While the no tapering announcement by the US Federal Reserve last month and the nomination of Janet Yellen to be the next Fed chair have helped emerging markets recoup some of the losses from this summer’s sell-off, the ongoing government shutdown and debt ceiling imbroglio in the US are once again taking the wind out of EM’s sails.
From Goldman:
EM asset moves immediately following the no-tapering FOMC announcement were sharper than after previous US bond rallies, especially in FX and rates, and less so in equities and credit, where the impact tends to build up more gradually. But the relief turned out to be short-lived, not only because concerns around US fiscal discussions set in but because rebalancing forces within EMs are still operating in the background."
'via Blog this'
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