You are here

Emerging markets are more risky after Trump's victory

There are few places to hide, with defensive trades already expensive and vulnerable to outflows

BT_20161114_HXTRUMP14_2595450.jpg
For EM, the biggest risk is in a sharp contraction in the US trade deficit on the back of increased tariffs. This would have the effect of driving up the value of the US dollar - historically a negative for EM.

PART of the uncertainty has been lifted, the event has happened. The outcome, however, isn't necessarily one which is friendly towards emerging markets (EM).

A rise in protectionism via higher tariffs for foreign-made products would impact trade flows globally, which would hurt profits,...

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes