Economics
Widening Trade Rift Means Rally in Emerging Markets Is All But Over
- Time isn’t ripe to position for tactical rally, SocGen says
- Bank of Thailand unexpectedly cut rates on global risks
This article is for subscribers only.
China may have handed traders a reprieve by disavowing the use of the yuan as a trade war tool, but a widening rift with the U.S. means investors may be better off selling into any relief rally in emerging Asian markets.
The trade war took a turn for the worse after Washington labeled Beijing a currency manipulator, days after vowing to slap more tariffs on Chinese goods. Even though the People’s Bank of China has said it won’t competitively devalue the yuan, its daily fixing has come under intense scrutiny for any signs of further weakening.