Countdown to Election Tests Emerging-Market Bulls’ Resilience
- Liquidity set to get thinner ahead of U.S. vote, Fidelity says
- Turkey seen hiking policy rate again; Russia may surprise
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This month’s emerging-market rally is showing signs of faltering as investors refrain from placing big bets in the final two weeks of the U.S. election campaign.
Even as Democrat Joe Biden has widened his lead over President Donald Trump in recent polls, a Bank of America Corp. survey showed global fund managers expect the outcome to be contested and are ready for extreme market turbulence. While growing odds that Democrats will take control of the White House and the Senate have boosted wagers for a weaker dollar and gains in developing-nation assets, this “comfortable consensus” in the market could unravel if the polls prove to be wrong, according to Fidelity International.