In April, emerging markets experienced a decline in bonds and currencies due to US interest rate concerns and geopolitical tensions.

In April, emerging markets faced a decline in bonds and currencies, leading to a shift in sentiment from optimism to negativity among former bulls. This occurred due to concerns about higher US interest rates and escalating geopolitical tensions, dampening risk appetite. Developing-nation sovereign bonds fell by the most in seven months, and a currency gauge reached its lowest since November. The US dollar's strengthening, repricing of the Federal Reserve rate outlook, and risk of US stagflation have also contributed to the shift.

May 05, 2024
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