Emerging market currencies suffer worst week since 2018 lira crisis
China’s offshore renminbi has weakened to its lowest level in five months
Philip Georgiadis in London
© AP
China’s offshore renminbi has weakened to its lowest level since November on escalated trade tensions, in the worst week for emerging market currencies since the Turkish lira crisis last summer.
Emerging market bond and equity funds have also experienced significant outflows this week, as talks between the US and China have stalled. Washington has accused Beijing of reneging on trade commitments, while China on Monday announced it would impose tariffs on $60bn of US imports starting on June 1, knocking investor sentiment further.
China’s offshore renminbi, which is widely traded in London, stood 0.1 per cent weaker at Rmb6.9400 per dollar around the start of full European trade. It has weakened nearly 3 per cent over the past two weeks as economic hostility between the world’s two largest economies have weighed on the currency.
The offshore renminbi is the “focal point” for trade tensions, analysts at ING said. “Were it to hit 7.00, alarm bells would ring even louder around the world.”
MSCI’s broad index of emerging market currencies has fallen 0.9 per cent since Friday, its biggest weekly fall since August last year when Turkey’s currency was in free fall, and fifth consecutive week of declines. It slipped 0.4 per cent to 1614.22 on Friday morning in London.
The uncertainty is also spreading through many of Asia’s trade-sensitive economies. The Singapore dollar has suffered its worst week since October, as the island state’s economy has shown signs of weakening, while the New Taiwan dollar has notched its biggest one-week declines since the same time.
Amid the risk-off sentiment, emerging market bond funds recorded their largest outflows since June 2018 in the week to May 15, according to Barclays. Passive funds largely drove the moves, but active funds also saw outflows for the first time since February.
“The resilience of inflows by institutional investors into EM bond funds may be tested over the next weeks,” the bank’s strategists said.
Overall, flows into dedicated bond and equity emerging market funds fell around $5bn, Barclays said.
Aside from the trade tensions, “the aggregate growth picture in emerging markets has not been particularly positive,” said Paul Fage senior emerging markets strategist at TD Securities, pointing to recent data including weakening industrial production.
“Probably the most important thing for emerging markets whether they can generate in aggregate a decent pick-up in growth to the developed markets and particularly the US, that has been one of the weaknesses coming into this year,” he said.
martes, mayo 21, 2019
EMERGING MARKET CURRENCIES SUFFER WORST WEEK SINCE 2018 LIRA CRISIS / THE FINANCIAL TIMES
|
Etiquetas:
Currencies,
Emerging Markets
Suscribirse a:
Enviar comentarios (Atom)
Bienvenida
Estimados amigos,
Les doy cordialmente la bienvenida a este Blog informativo con artículos, análisis y comentarios de publicaciones especializadas y especialmente seleccionadas, principalmente sobre temas económicos, financieros y políticos de actualidad, que esperamos y deseamos, sean de su máximo interés, utilidad y conveniencia.
Pensamos que solo comprendiendo cabalmente el presente, es que podemos proyectarnos acertadamente hacia el futuro.
Gonzalo Raffo de Lavalle
Las convicciones son mas peligrosos enemigos de la verdad que las mentiras.
Friedrich Nietzsche
Quien conoce su ignorancia revela la mas profunda sabiduría. Quien ignora su ignorancia vive en la mas profunda ilusión.
Lao Tse
“There are decades when nothing happens and there are weeks when decades happen.”
Vladimir Ilyich Lenin
You only find out who is swimming naked when the tide goes out.
Warren Buffett
No soy alguien que sabe, sino alguien que busca.
FOZ
Only Gold is money. Everything else is debt.
J.P. Morgan
Las grandes almas tienen voluntades; las débiles tan solo deseos.
Proverbio Chino
Quien no lo ha dado todo no ha dado nada.
Helenio Herrera
History repeats itself, first as tragedy, second as farce.
Karl Marx
If you know the other and know yourself, you need not fear the result of a hundred battles.
Sun Tzu
We are travelers on a cosmic journey, stardust, swirling and dancing in the eddies and whirlpools of infinity. Life is eternal. We have stopped for a moment to encounter each other, to meet, to love, to share.This is a precious moment. It is a little parenthesis in eternity.
Paulo Coelho
Les doy cordialmente la bienvenida a este Blog informativo con artículos, análisis y comentarios de publicaciones especializadas y especialmente seleccionadas, principalmente sobre temas económicos, financieros y políticos de actualidad, que esperamos y deseamos, sean de su máximo interés, utilidad y conveniencia.
Pensamos que solo comprendiendo cabalmente el presente, es que podemos proyectarnos acertadamente hacia el futuro.
Gonzalo Raffo de Lavalle
Las convicciones son mas peligrosos enemigos de la verdad que las mentiras.
Friedrich Nietzsche
Quien conoce su ignorancia revela la mas profunda sabiduría. Quien ignora su ignorancia vive en la mas profunda ilusión.
Lao Tse
“There are decades when nothing happens and there are weeks when decades happen.”
Vladimir Ilyich Lenin
You only find out who is swimming naked when the tide goes out.
Warren Buffett
No soy alguien que sabe, sino alguien que busca.
FOZ
Only Gold is money. Everything else is debt.
J.P. Morgan
Las grandes almas tienen voluntades; las débiles tan solo deseos.
Proverbio Chino
Quien no lo ha dado todo no ha dado nada.
Helenio Herrera
History repeats itself, first as tragedy, second as farce.
Karl Marx
If you know the other and know yourself, you need not fear the result of a hundred battles.
Sun Tzu
We are travelers on a cosmic journey, stardust, swirling and dancing in the eddies and whirlpools of infinity. Life is eternal. We have stopped for a moment to encounter each other, to meet, to love, to share.This is a precious moment. It is a little parenthesis in eternity.
Paulo Coelho

Archivo del blog
-
▼
2019
(2010)
- ► septiembre (187)
-
▼
mayo
(233)
-
▼
may 21
(9)
- THE GLOBAL CONSEQUENCES OF A SINO-AMERICAN COLD WA...
- TAKEAWAYS FROM THE SIC / JOHN MAULDIN´S WEEKLY NEW...
- WE HAVE REACHED THE END OF THE FRANCO-GERMAN LOVE-...
- THE PHYSICAL OIL MARKET IS SAYING WE ARE ABOUT TO ...
- EMERGING MARKET CURRENCIES SUFFER WORST WEEK SINCE...
- THE DOLLAR WILL DOMINATE FOR A WHILE YET / THE FIN...
- CENTRAL BANKS SOFTEN US UP FOR HIGHER INFLATION / ...
- THE BREXIT IMPOSSIBILITY TRIANGLE / PROJECT SYNDIC...
- END OF DAYS / CASEY RESEARCH
-
▼
may 21
(9)
-
►
2018
(1928)
- ► septiembre (173)
-
►
2017
(1947)
- ► septiembre (160)
-
►
2016
(2576)
- ► septiembre (182)
-
►
2015
(2928)
- ► septiembre (271)
0 comentarios:
Publicar un comentario