Morgan Stanley Turns Bearish on Emerging Market Currencies on China Risks

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 25 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 13%
  • Publisher: 50%

Ireland News News

Ireland Ireland Latest News,Ireland Ireland Headlines

Morgan Stanley is returning to a bearish view on emerging-market currencies, citing concerns over China’s growth risks that not only weigh on the yuan but also further pressure a weak global economy.

The shift from a neutral stance partly resulted from a view change on the offshore yuan, where the Wall Street giant has added a short position given expectations for growth risks to remain a focus, strategists led by James Lord wrote in a note. “CNH weakness and China macro weakness should spill over to the rest of EM.”

Asian currencies, particularly the Singapore dollar, baht, won and ringgit look most exposed to a China growth slowdown, while EM peers including the rupee and Turkish lira may be better positioned, Morgan Stanley’s strategists wrote. “We are not expecting a significant rebound in sentiment towards China’s outlook in the short term,” the strategists wrote, citing low private-sector confidence, deleveraging in the property sector and longer-term issues from debt to demographics.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in İE

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

‘Oversold’ UK Property Stocks a Value Play, Morgan Stanley SaysUK property stocks are a value play, rather than a value trap, according to Morgan Stanley analysts.
Source: BNNBloomberg - 🏆 83. / 50 Read more »