Emerging Stocks to Drop on Commodities Risk: Technical Analysis
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Emerging-market stocks, especially Brazil and India, are poised to “significantly underperform” next year as commodity prices fall further, according to Bank of America Corp.
The Continuous Commodity Futures Price Index’s drop below key Fibonacci support “points to additional downside risk,” Mary Ann Bartels, New York-based head of U.S. technical and market analysis at Bank of America, wrote in a Dec. 19 note. Emerging markets may be “negatively impacted by the break in commodities,” she said.