JPMorgan Flags Geopolitics as Reason to Sell Emerging Markets
- JPM notes Russia tensions with Ukraine, slower China inflows
- Argentine peso, Brazil real lead most EM FX lower this year
This article is for subscribers only.
The outlook for emerging market currencies is looking bleaker for JPMorgan Chase & Co.
Strategists Jonny Goulden and Saad Siddiqui recommended cutting emerging market currencies to underweight. The bank cited tensions in Russia as part of the reason behind the move. Domestic policy in Turkey and Brazil, and slowing growth and portfolio flows in China were also among challenges noted by the bank.