{"id":598221,"date":"2019-05-19T03:48:14","date_gmt":"2019-05-19T03:48:14","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/sharp-downturn-for-em-assets-amid-global-volatility\/"},"modified":"2019-05-19T03:48:14","modified_gmt":"2019-05-19T03:48:14","slug":"sharp-downturn-for-em-assets-amid-global-volatility","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/sharp-downturn-for-em-assets-amid-global-volatility\/","title":{"rendered":"Sharp downturn for EM assets amid global volatility"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-05\"><\/a> <b>\u201c<\/b><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-05-17\/the-trade-war-has-sunk-emerging-markets-there-s-more-to-come\"><b>The trade war has sunk emerging markets. There's more to come.<\/b><\/a><b>\u201d \u2014Welcome to the new narrative on EM.<\/b> May has been a bad month for EM bonds, equities and currencies \u2014 and it could get worse as stalled US-China trade talks prolong uncertainty in the market.<\/p>\n<p><b>Off the proverbial cliff? <\/b>EM equities and bonds seemed as <a href=\"https:\/\/enterprise.press\/stories\/2019\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx-3\/\">recently as April<\/a> to be on track, but the MSCI EM equities index plummeted 3.7% last week, erasing most of its year-to-date gains, according to <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-05-17\/the-trade-war-has-sunk-emerging-markets-there-s-more-to-come\">Bloomberg<\/a>. The MSCI EM currency index fell nearly 1% last week, its fifth consecutive week of decline, the <a href=\"https:\/\/www.ft.com\/content\/13bd4936-7879-11e9-be7d-6d846537acab\">Financial Times<\/a> writes. EM bond funds saw their largest outflows since June 2018 in the week leading up to 15 May, with active funds seeing outflows for the first time since February. Meanwhile, overall inflows into EM bond and equity funds declined by around USD 5 bn, according to Barclays. May has for the past decade been bad for EM outflows, but May 2019 is on track to be the worst since 2012 for stocks and since 2016 for currencies.<\/p>\n<p><b>It ain\u2019t over yet:<\/b> EM are vulnerable to global market volatility, with equities left \u201changing in the balance of the global risk environment,\u201d say Goldman Sachs strategists Caesar Maasry and Ron Gray. Even leaving aside trade tensions, analysts have highlighted the recent failure of EM currencies to perform and the lack of aggregate growth. And Brendan McKenna, currency strategist at Wells Fargo, says we haven\u2019t seen the end of it yet. \u201cThere is more volatility to come. There aren\u2019t a whole lot of things that can support EM right now.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cThe trade war has sunk emerging markets. There's more to come.\u201d \u2014Welcome to the new narrative on EM. May has been a bad month for EM bonds, equities and currencies \u2014 and it could get worse as stalled US-China trade talks prolong uncertainty in the market. Off the proverbial cliff? EM equities and bonds seemed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":598222,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9272],"tags":[82,116,380,72,164,118,1510,117],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-598221","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-macro-picture","tag-bonds","tag-china","tag-currencies","tag-enterpriseam","tag-equities","tag-msci","tag-the-macro-picture","tag-us","wpautop","entry"],"acf":{"mongo_id":"c7aee733-5ba0-4274-a51b-3c9ed144a7f0","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2019\/5\/2220.jpg","photo_position":"above","related_issue":[598204],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Sharp downturn for EM assets amid global volatility - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/sharp-downturn-for-em-assets-amid-global-volatility\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sharp downturn for EM assets amid global volatility\" \/>\n<meta property=\"og:description\" content=\"\u201cThe trade war has sunk emerging markets. 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EM equities and bonds seemed [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/sharp-downturn-for-em-assets-amid-global-volatility\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2019-05-19T03:48:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2019\/5\/2220.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/sharp-downturn-for-em-assets-amid-global-volatility\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/sharp-downturn-for-em-assets-amid-global-volatility\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Sharp downturn for EM assets amid global volatility\",\"datePublished\":\"2019-05-19T03:48:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/sharp-downturn-for-em-assets-amid-global-volatility\/\"},\"wordCount\":272,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/sharp-downturn-for-em-assets-amid-global-volatility\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2019\/5\/2220.jpg?fit=%2C&ssl=1\",\"keywords\":[\"Bonds\",\"China\",\"currencies\",\"EnterpriseAM\",\"equities\",\"MSCI\",\"THE MACRO PICTURE\",\"US\"],\"articleSection\":[\"THE MACRO PICTURE\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/sharp-downturn-for-em-assets-amid-global-volatility\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2019\/05\/19\/sharp-downturn-for-em-assets-amid-global-volatility\/\",\"name\":\"Sharp downturn for EM assets amid global volatility - 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GSAM sees \u201ca rare combination of value and improving fundamentals in parts of the developing world, and currencies\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":591667,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/12\/how-do-analysts-feel-about-emerging-markets-going-into-2020\/","url_meta":{"origin":598221,"position":1},"title":"How do analysts feel about emerging markets going into 2020?","author":"enterpriseam admin","date":"12 December 2019","format":false,"excerpt":"How do analysts feel about emerging markets going into 2020? Emerging markets are set to outperform developed markets in 2020, predict 57 global investors, traders and strategists in a Bloomberg survey, with all assets \u2014 currencies, stocks, and bonds \u2014 having rallied this year after 2018\u2019s EM Zombie Apocalypse. Total\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/12\/2354.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":600756,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/02\/10\/wall-of-money-destined-for-emerging-markets-iif\/","url_meta":{"origin":598221,"position":2},"title":"\u201cWall of money\u201d destined for emerging markets- IIF","author":"enterpriseam admin","date":"10 February 2019","format":false,"excerpt":"\u201cWall of money\u201d destined for emerging markets- IIF: A \u201cwall of money\u201d is heading for emerging market assets after the US Federal Reserve eased concerns over an imminent rise in interest rates, the Institute of International Finance (IIF) said in a new report published on Thursday. The global industry body\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/2\/77.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":602936,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/04\/10\/why-is-2019-a-new-story-for-em-assets-but-the-same-old-song-for-fx\/","url_meta":{"origin":598221,"position":3},"title":"Why is 2019 a new story for EM assets, but the same old song for FX?","author":"enterpriseam admin","date":"10 April 2019","format":false,"excerpt":"Why is 2019 a new story for EM assets, but the same old story for FX? The MSCI EM currency index hasn\u2019t replicated the gains enjoyed so far this year by EM equities and bonds, says Bloomberg. The index has largely remained flat since January, and perspectives differ as to\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/4\/1570.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":596783,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/08\/emerging-markets-to-reap-the-benefits-of-a-fed-rate-cut-bloomberg-survey\/","url_meta":{"origin":598221,"position":4},"title":"Emerging markets to reap the benefits of a Fed rate cut -Bloomberg survey","author":"enterpriseam admin","date":"8 July 2019","format":false,"excerpt":"Emerging markets to reap the benefits of a Fed rate cut -Bloomberg survey: Emerging market equities, bonds, and currencies will reap the benefits if the world\u2019s major central banks go ahead with expected rate cuts, according to a quarterly poll of 42 fund managers, traders, and strategists conducted by Bloomberg.\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/7\/2360.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":650200,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/03\/19\/msci-em-hits-20-month-high-on-thursday\/","url_meta":{"origin":598221,"position":5},"title":"MSCI EM hits 20-month high on Thursday","author":"enterpriseam admin","date":"19 March 2017","format":false,"excerpt":"Mexico, Asian and central European bourses led the MSCI Emerging Markets Index toa 20-month high on Thursday and its best one-day gain since last July as EM shrugged off the US Federal Reserve\u2019s rate hike, the Financial Times reports. Be careful about unbridled optimism, though: \u201cEmerging market equities in particular\u2026","rel":"","context":"In &quot;THE MACRO PICTURE&quot;","block_context":{"text":"THE MACRO PICTURE","link":"https:\/\/enterpriseam.com\/egypt\/category\/the-macro-picture\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/598221","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=598221"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/598221\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/598204"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/598222"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=598221"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=598221"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=598221"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=598221"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=598221"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}