Skip to content
Subscriber Only

Time to Get Picky in Emerging Markets in Grip of Political Risks

  • Pinebridge prefers to be selective amid country-specific risks
  • Argentine markets have priced in victory by populist Fernandez
People line up outside of a currency exchange house in Buenos Aires, Argentina, on Oct. 25.

People line up outside of a currency exchange house in Buenos Aires, Argentina, on Oct. 25.

Photographer: Anita Pouchard Serra/Bloomberg
Updated on

Emerging markets head toward the end of October with a spring in their step after currencies and stocks reached the strongest levels in three months.

Optimism about a U.S.-China trade deal, coupled with the prospect of a third interest-rate cut this year by the Federal Reserve -- which would increase the scope for even lower rates in developing economies themselves -- look set to sustain the rally. Yet traders will be on the lookout for any further evidence of slowing global growth as well as the myriad of political risks in the developing world.