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Trump's 2020 Push May Mean Rocky Times for Emerging Markets

  • Mexican peso back in May trading range after bout of weakness
  • Investors need to beware policies aimed at voters, not markets
Updated on

If investors learned anything at all from the recent turmoil in Mexico’s markets, it’s that U.S. President Donald Trump‘s push for a second term in the White House is likely to throw up plenty of gyrations -- and a lot of that may be more noise than signal.

Trump’s threat at the end of May to impose tariffs on Mexican goods caught traders by surprise, causing the peso to weaken and broader markets to shudder. His announcement of a deal on Friday to avert them leaves investors more or less back at square one.