UBS Analyst Who Called Emerging-Market Rout Sees Gain Fading
- South African rand, Colombian peso among leaders in decline
- Rally in emerging markets driven by unwinding of bearish bets
This article is for subscribers only.
The one-month long rebound in emerging-market assets is poised to reverse, according to Bhanu Baweja, a UBS Group AG strategist who correctly called this year’s rout.
While expectations for more monetary easing from global central banks have helped stabilize developing-nation stocks and currencies in the past month, weakness in exports and commodity prices as well as higher debt repayments will keep the assets under pressure, said Baweja, USB’s head of emerging-market cross asset strategy in London.