EM assets rally – SocGen

Research Team at Societe Generale, suggests that the EM assets have performed well in 2016, be it in credit, FX or equity.

Key Quotes

“The JPMorgan EM FX index is up 5% YTD, while the MSCI Emerging Markets index has outperformed the S&P 500 by 9%.

EM assets have enjoyed several tailwinds including rising commodity prices, improving economic momentum, stabilisation in China, and the continuous search for yield.

Flow effects, stabilising growth, and improved external vulnerability profile could support further (albeit asymmetrical) EM gains against a backdrop of easy monetary policies.”