INSUBCONTINENT EXCLUSIVE:
By Ruth Carson and Andreea PapucFranklin Templeton Investments says the rout in emerging markets may be nearing a bottom though reckons
there are still countries like the Philippines that will suffer.
Given the uncertainty, the money manager is keeping a net neutral dollar
position, while making trades including shorting the Philippine peso, as well as betting the Aussie will decline against the New Zealand
rout in emerging-market assets this year was spurred by higher Treasury yields and US tax cuts, alongside angst over the escalation of trade
restrictions between the US and China
gained more than 5 per cent since mid-April.
JPMorgan Asset Management and Man Group Plc are among those expecting further strength
Trump to previously jawbone the currency
Futures Trading Commission show.
It could go either way, Siniakov said
The dollar might appreciate more if investors continue to seek haven assets amid worsening US and China trade relations, though it may be
consists of investment-grade corporate bonds
But even there, things are looking expensive, he said.
Below are excerpts of an interview with Siniakov and Andrew Canobi, director of fixed
continuing to hold inflation protection -- we play in the zero coupon swap space in US inflation markets
If late-cycle inflation does spike in the US, then we have some protection
The Aussie dollar is being driven lower not by domestic factors, even though the property market headlines have some offshore investors
The kiwi dollar suffered because of that
We see the Aussie potentially trading at around 106 against the Kiwi.
Have we seen the end of the emerging market routWe are closer to a
We think the most important metric is going to be financial asset prices -- as long as they remain stable, the Fed is emboldened to keep
