US economy not at risk from modest China slowdown

Central European bonds and currencies have been remarkably resilient during the recent turmoil in the global financial markets. In contrast, Turkish markets have been hit by fresh concerns about the political situation and a general spike in investor risk aversion, while the Russian ruble and bonds have been dragged down by the drop in oil prices. In light of the falls in the Turkish and Russian markets, we have revised down our lira and ruble forecasts.