Economics
Trump a Bigger Threat to Markets Than Turkey, NAB's Attrill Says
- The EM contagion will be swamped by the ongoing trade spat
- Emerging-market risks loom, sees selling opportunities ahead
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U.S. President Donald Trump’s trade war is a bigger threat for emerging-market currencies than Turkey’s deepening economic crisis, according to Ray Attrill, National Australia Bank Ltd.’s head of foreign-exchange strategy.
The trade spat escalation will dwarf the contagion effect seen in emerging markets, Attrill said in an interview on Bloomberg Television Tuesday. Emerging-market currencies could come under further pressure if the Trump administration dials up tariff disputes, which will mean more dollar strength, slower Chinese growth and potentially slower global growth, he said.