Emerging-Market Rally Seen Unstoppable as Traders Turn to Powell
- Implied volatility had its biggest weekly drop since 2011
- Investors seek clues on further stimulus from the Fed chairman
Photographer: Johannes Eisele/AFP via Getty Images
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There’s so much positive momentum in risk assets, it’s difficult to see what could stand in the way of the emerging-market rally, at least in the coming days.
The stronger-than-forecast May U.S. jobs report and weekend agreement by OPEC+ to a one-month extension of its record output cuts may add to the optimism about the prospects for a global economic recovery, underpinning risk assets. JPMorgan Chase & Co.’s measure of implied volatility for emerging-market currencies had its biggest weekly drop since 2011. Stocks enjoyed their best week since 2011, while an index of domestic bonds reached its highest point since early March.