Trade War Tops Emerging-Market Worries Again as Skepticism Grows
- EM currency implied volatility had biggest jump since August
- Bank of Singapore cuts investments in emerging-market debt
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The standoff between the U.S. and China is back at the top of emerging-market investor concerns as they assess how far they should price in a full-blown trade war.
China said Monday it will raise tariffs on some American goods starting June 1, ignoring a warning from President Donald Trump that the trade standoff will “get worse” if there is retaliation for the latest increase of U.S. duties. The emerging stalemate in trade negotiations reflects widening differences that are unlikely to be resolved soon, with the world’s two largest economies deadlocked over how and when to remove existing American tariffs.