Are EM stocks flashing a 'sell' signal?
The US-China trade war is reconfiguring the global supply chain, depressing risk sentiment, and providing a significant headwind to emerging market equities. The iShares MSCI Emerging Markets Index Fund is now below crucial support at 41.50 with the next technical support level at 38, the December 2018 low.
WCU: Oil succumbs to growth concerns, but tightness persists
The month of May went from bad to worse as the trade war rhetoric between the US and China moved up a notch. Commodities, dependent on growth and demand, took fright, with the energy sector leading the Bloomberg Commodity Index to a weekly loss.
Macro Update: Trade war versus recovery
At the beginning of the year, the consensus expected a V-shaped recovery over the course of H2. All the latest economic data that have been released, however, paint a very different picture. Headling risk and macro softness are combining to form a volatile circumstance for global markets.