The wobble in financial markets in the emerging world since investors began to reassess the outlook for US monetary policy in May has been much smaller than in the past. The Fed, along with renewed concerns about China’s economy or even a vote for the UK to leave the EU, could all deliver shocks to emerging markets (EMs) in the months ahead. But given that so much bad news appears to already to have already been factored into asset prices, we doubt that any losses would be larger or last long.
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