Emerging markets shrug off growth fears — for now

By Lewis McLellan, Sam Kerr
06 Jun 2019

The Federal Reserve is losing confidence in the US economy, global economic growth is flagging and Treasury yields are staggeringly low. Emerging market assets, meanwhile, are full of beans, as low rates and healthy risk appetite provide a magic combination for EM companies looking to raise capital. But the Fed is worried for a reason: there’s trouble ahead, write Lewis McLellan and Sam Kerr.

In a speech that sounded almost Draghi-esque, Fed Chair Jerome Powell said on Tuesday that the central bank would “act as appropriate to sustain the expansion” of the US economy. The message was clear: whether it’s the impact of the US’s trade wars with China and Mexico, or ...

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