Forex Flash: Emerging market asset performance weakens – Goldman Sachs

FXstreet.com (Barcelona) - Over the past several months, Emerging Markets (EM) asset performance has been weak across a wide set of markets. Cyclical EM assets (equities, FX and credit) have underperformed, while counter-cyclical assets (yields) have outperformed. “While this weakness coincides with a deterioration of the global macro data picture, it appears to be deeper than the data would suggest. There are three potential explanations, EMs represent a buying opportunity, they are a ‘canary in the global growth coal mine’, and they reflect common constraints and challenges faced specifically by EM economies, rather than broader global cyclical.” notes the Economics Research Team at Goldman Sachs.