Oil Price Surge Upends Emerging-Market Disinflation Trade

  • 📰 YahooFinanceCA
  • ⏱ Reading Time:
  • 44 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 21%
  • Publisher: 63%

대한민국 뉴스 뉴스

대한민국 최근 뉴스,대한민국 헤드 라인

(Bloomberg) -- Just a couple of months ago, emerging-market assets were all the rage as inflation eased and interest rate-cut bets surfaced. The trade has all but fizzled out. Most Read from BloombergWells Fargo Preps for Wealth Battle After $1 Billion TurnaroundUS to Keep a Distance From India-Canada Dispute, Signum’s Myers SaysBond Market Faces Quandary After Fed Signals It’s Almost DoneChina’s Ultra-Rich Gen Zs Flock Home as Global Tensions RiseRaw Meat-Eating Liver King And Other Health Infl

The rapid change has come about as oil rallied some 30% from the year’s low to alter the dynamics for developing nations. Costlier crude is reviving price pressures and damping hopes that interest rates will fall, while threatening to undermine the fiscal balances of energy importers.

The cracks are starting to show. A Bloomberg gauge of emerging-market government bonds and an MSCI index of developing-nation currencies are both closing in on a second month of declines. HSBC Holdings Plc notes that South Africa’s bonds may also suffer given the nation’s status as a net oil importer. At the other end of the spectrum, GlobalData TS Lombard reckons Chinese debt will be the most resilient as high oil prices help normalize producer price disinflation.

“Higher oil prices will likely act as a tax on other economies which are net importers, reducing real incomes and slowing growth,” said Marcella Chow, global market strategist at JPMorgan Asset Management. “This could put downward pressure on their currencies and their central banks may need to maintain interest rates at the current level, or even raise rates, to protect their currencies.”

 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.
이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 47. in KR

대한민국 최근 뉴스, 대한민국 헤드 라인

Similar News:다른 뉴스 소스에서 수집한 이와 유사한 뉴스 기사를 읽을 수도 있습니다.

Oil’s rally cools as tight crude market vies with hawkish U.S. FedOil eased off yearly highs, capping a tumultuous week that saw the U.S. Federal Reserve flagging a further rate hike and Russia banning diesel exports.
출처: BNNBloomberg - 🏆 83. / 50 더 많은 것을 읽으십시오 »