"Some Differentiation Visible In Recent Emerging Markets Performance"

Though the global environment has pushed further capital flows into emerging markets, some differentiation according to bottom-up developments and fundamentals is still visible in recent post-U.K. referendum performance, notes Barclays. Andreas Kolbe and colleagues point out in their August 11 research piece titled “Differentiation in a correlated world” that though Egypt’s IMF agreement could improve the country’s outlook, implementation risks remain high. Emerging markets: Turkey’s underperformance likely to persist Kolbe and team point out that within a continued favorable environment for risk assets, the rally in EM assets has again gathered pace. The global environment, aided by accommodative central bank policies,…