Emerging market assets continued to underperform in March. The "stripped" spread of the JP Morgan EMBI+ Global Index over Treasuries rose to its highest level since late September 2012, while the MSCI Emerging Markets Index of equities dropped by 1% in local currency terms despite further strong gains in the US S&P 500. Investors’ waning appetite for emerging market assets probably stems from at least three factors. First, a mounting concern that the Fed’s quantitative easing is on borrowed time. Second, doubts about the prospects for growth in emerging market economies. And third, fresh worries about the situation in the euro-zone.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services