ECB Replaces Fed as Driver of Emerging Markets: Chart of the Day
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The European Central Bank is overtaking the Federal Reserve as the biggest driver of emerging-market assets, giving bonds from Brazil to Poland a boost from lower borrowing costs in the euro area, according to Goldman Sachs Group Inc.
The CHART OF THE DAY shows that the 90-day correlation between bond yields in emerging markets and euro-zone countries has increased to 0.52 from 0.18 in May, data compiled by Bloomberg and JPMorgan Chase & Co. show. A reading of 1 indicates the two move in lockstep.