The Trade War Has Sunk Emerging Markets. There's More to Come.

  • Strategists say there are ‘no deadlines’ for pressure to ease
  • EM currencies erase 2019 advance as trade war escalates
Photographer: Patricia Monteiro/Bloomberg
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Another week, another leg of the emerging-market rout.

An MSCI gauge of developing-nation stocks slipped 3.7%, setting the stage for the worst month since October. It was even worse for currencies, which capped a fifth straight week of declines, erasing gains for the year. Brazil’s real led the drop as protests added to political tensions and growth forecasts declined.