Morgan Stanley Turns Gloomier on EM as Fed, Trade Woes Bite - Bloomberg

Morgan Stanley Turns Gloomier on EM as Fed, Trade Woes Bite - Bloomberg:

Morgan Stanley has turned bearish on emerging-market Eurobonds, saying that a “surprisingly hawkish” Federal Reserve and worsening trade tensions are piling pressure on developing nations.

“The backdrop for EM has worsened in several ways in a short space of time,” analysts, including London-based James Lord and Jaiparan Khurana, said in a note on Friday. “All this justifies a more cautious stance and will likely worsen an already weak global-growth backdrop.”

The Wall Street bank removed a bullish call on emerging currencies a day earlier for similar reasons.