The shares of emerging markets have become its gains for this year in one of its worst days since the global financial crisis under the pressure of the exhausting American customs duties that prompted investors to escape safe from the markets.
The Morgan Stanley MSCI Index decreased 8.4% today, Monday, recorded the largest daily decrease since 2008, and the main indicators in continental China, Hong Kong, South Korea and Taiwan recorded significantly, and the Morgan Stanley Index decreased for emerging market currencies, while the risk of credit in Asia increased its highest level since 2020.
Random sale
“This is a random sale,” Bloomberg was quoted by the Bloomberg Agency, “Bloomberg,”, adding that at a time when liquidity levels in the markets rose there is a maximum “when I can invest it.”
The possibility of a great slowdown in American growth due to customs duties – with the consequent negative effects on the rest of the world (stimulates) re -pricing in global markets, and a number of economists, including the Goldman Sachs Group, believes that the possibility of stagnation in the world is increasing.
Beijing is facing some of the most severe drawings, and has announced that it will impose counter -procedures on Washington.
The Chinese People’s Bank has reduced its daily reference price to the yuan to an unprecedented level since last December, and the worsening trade war raises speculation in the financial markets that China may resort to the value of the yuan sharply against the dollar, in a change in its policy aimed at the stability of the currency.
Currency index
The Morgan Stanley MSCI Currency Currency Index decreased to its lowest level in a month, and this decrease led the Mexican Bezo, along with the South African Rand, to fall to their lowest level in a year.
While the Indonesia markets were closed for a week on vacation, the country’s central bank has been prevented by what is likely to reopen a turbulent intervention in the external rupee market today, and officials said they would intervene “strongly” in the local market when reopening the local market on Tuesday.
“We have witnessed in Asia great fluctuations. We believe that there is a strong motivation to reduce interest rates,” Bloomberg quoted the director of the GB Morgan Asset Management Currency Management, Jason Bang.
The worsening trade war raises speculation that China may resort to the value of the yuan sharply against the dollar, in a change in its policy of currency stability.
Egypt bonds
In a related context, the international sovereign bonds of a number of emerging markets witnessed extensive sales, as no indications of Trump’s intention to retract comprehensive customs duties plans.
Detoep’s data showed that long -term bonds denominated in dollars for Pakistan fell more than 13 cents and Sri Lanka bonds retreated by more than 6 cents, while the bonds of Egypt, Angola and Kenya fell by more than 4 cents.
