Emerging Markets Defy Risks With Turkey Taking Center Stage
- EM recovery is just getting started, Bank of America says
- Turkey’s rate decision under new chief will be in spotlight
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Even with the U.S. election out of the way, investors could be forgiven for taking a cautious view of emerging markets, given the wall of risks ahead for the world’s developing economies.
Yet the spread of the coronavirus, debt troubles at Chinese state-owned firms and rumbling political tension from Thailand and Turkey to Brazil and Peru are doing little to dissuade the bulls. Underscoring the market calm, measures of implied volatility for currencies and stocks declined for a second week in the five days through Friday.