Emerging-market equities and currencies are at risk of further declines due to unaccounted threats from potential tariffs imposed by Donald Trump, according to UBS Group AG. The UBS Emerging Markets Risk Appetite Index indicates a strong market sentiment, despite low pricing of risks related to earnings estimates, currency-hedging costs, and credit default swaps.
Emerging-market equities and currencies are at risk of further declines due to unaccounted threats from potential tariffs under Donald Trump, according to UBS. The firm notes that the current market pricing of risks remains historically low, with significant losses already recorded since the US election. China's deflation is enhancing the yuan's competitiveness, which could pressure production and capital expenditure in other emerging markets, particularly as tariffs may slow China's imports and impact commodity exporters. Countries like Mexico, Vietnam, and Korea face heightened uncertainty due to their trade surpluses with the US.
Seems like the connection with the server has been lost. It can be due to poor or broken network. Please hang on while we're trying to reconnect...
Oh snap! Failed to reconnect with the server. This is typically caused by a longer network outage, or if the server has been taken down. You can try to reconnect, but if that does not work, you need to reload the page.
Oh man! The server rejected the attempt to reconnect. The only option now is to reload the page, but be prepared that it won't work, since this is typically caused by a failure on the server.