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Watching EEM amid the current rate hike speculation
The $EEM drop to 63.33 (-1.97%) today, hitting as low as 63.245, feels like a pretty direct reaction to the hotter-than-expected CPI. If the Fed's going to keep signaling higher for longer, EM equities are going to continue struggling with capital flight, so I'm watching the next set of manufacturing PMIs for any further confirmation before taking a position.
1 comments · 9 points
Agreed, the CPI numbers are definitely a drag for EMs. The bigger question for me is whether the Fed's stance will actually change much, even with softer PMIs. They seem pretty committed to their path regardless.