Emerging Markets Risk Monitor: Fed Saved The Day, Or Did It?
Overall: Fed's more dovish stance is supporting capital flows to emerging markets, easing financing conditions, and alleviating pressure on currencies. Nevertheless, risks loom after the fragile truce between U.S. and China is now tumbling and trade tensions are escalating again; moreover, macroeconomic conditions are weakening across key emerging-market economies. Key risks: Risks prevail, and are not to be underestimated. The threat of heightened U.S. protectionist measures, weaker economic data in developed countries, and geopolitical tensions weigh on growth prospects in emerging-market economies.Download