Emerging Markets Drop for Fourth Day as Brexit Concern Deepens
- Polls favor Britain’s ‘Leave’ campaign before June 23 vote
- Traders demand two-month high premium to hold sovereign debt
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Emerging-market stocks and currencies posted their biggest four-day declines since January on growing concern that the U.K. will leave the European Union. Investors turned the most bearish in two months on sovereign debt.
Equity gauges from Brazil to South Africa dropped at least 2 percent as investors sold riskier assets after polls favored Britain’s “Leave” campaign before the June 23 referendum. The ruble weakened for a third day as Brent crude slid. Poland’s bond yields jumped to the highest level in almost 12 months. Chinese shares rebounded and Pakistan’s main gauge rose to a record amid speculation the nations’ stocks will be added to the MSCI Emerging Markets Index.