Holiday Hangover Seen Gripping EM Assets as Turks Return to Work
- Options traders most bearish on lira, rand, ruble, real in EM
- Lira sinks, while Mexico’s peso advances on Nafta optimism
Shoppers walk in the Grand Bazaar market in Istanbul.
Photographer: Ismail Ferdous/BloombergThis article is for subscribers only.
Last week’s gains may turn into yet another short-lived reprieve as Turks return to work after a long holiday and anxiety over elections in Brazil grows.
There are other reasons for investors to shun riskier assets. The trade skirmish between the U.S. and China may get uglier. And despite the “manifest value” in long-end South African bonds and the rand, investors are bracing for a deterioration in relations between South Africa and the U.S. after President Donald Trump leaped into the land debate, according to Goldman Sachs Group Inc. The U.S. announced on Friday details of limited new sanctions against Russia as the countries exchanged warnings about a possible chemical attack in Syria.