Emerging Markets on Edge as Goldman and Deutsche Bank Flag Risks
- Gap between EM, G-7 currency volatility at widest since June
- Indian and Philippine central banks set to hold interest rates
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Emerging markets are heading toward the end of the third quarter with more reasons to be cautious than optimistic.
Developing-nation stocks, currencies and bonds had their worst week in the five days through Friday since the coronavirus pandemic rocked global markets in March. The gap between implied volatility in emerging-market currencies and their Group-of-Seven peers is at the widest since June amid concerns over renewed lockdown measures and delays to further U.S. fiscal stimulus. Emerging-market exchange-traded funds suffered the biggest weekly outflow since early July as assets tumbled.