News Formal

Emerging stocks, currencies diverge as markets price U.S. Fed easing

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 37 sec. here
  • 12 min. at publisher
  • 📊 Quality Score:
  • News: 53%
  • Publisher: 50%

Bonds News

Business,Company News,Financials

The benchmark indexes for emerging-market equities and currencies, respectively, moved in opposite directions Monday, deepening a trend that emerged last week, when their short-term correlation was interrupted for the first time in 21 years.

Srinivasan Sivabalan and Colleen Goko --

Last week’s unwinding of the yen carry trade led to a weaker dollar index, “but an overall weakening eqiuty market selloff,” said Rajat Agarwal, Asia equity strategist at Societe Generale SA. “Now, we are starting to see some strength in the dollar coming back but stock markets are stabilizing faster given the sharp selloff.” He said he expected the traditional correlation to return “when re revert to more normal market conditions.

But the bigger markets action in China was in 10-year yuan bonds, with the benchmark yield heading for the biggest increase since February. The securities had extended recent declines as the central bank warned about potential risks arising from the relentless rally in debt markets.

 

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 PH

Philippines Philippines Latest News, Philippines Philippines Headlines

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

Fed responds to economic data, not politics or stocks, says Chicago Fed's GoolsbeeThe Kitco News Team brings you the latest news, videos, analysis and opinions regarding Precious Metals, Crypto, Mining, World Markets and Global Economy.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Fed responds to economic data, not politics or stocks, says Chicago Fed's GoolsbeeChicago Federal Reserve Bank President Austan Goolsbee on Thursday reiterated that the central bank's job is not to respond to stock market routs or...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »