"Some Differentiation Visible In Recent Emerging Markets Performance"

Though the global environment has pushed further capital flows into emerging markets, some differentiation according to bottom-up developments and fundamentals is still visible in recent post-U.K. referendum performance, notes Barclays. Andreas Kolbe and colleagues point out in their August 11 research piece titled “Differentiation in a correlated world” that though Egypt’s IMF agreement could improve the country’s outlook, implementation risks remain high.

Emerging markets: Turkey’s underperformance likely to persist

Kolbe and team point out that within a continued favorable environment for risk assets, the rally in EM assets has again gathered pace. The global environment, aided by accommodative central bank policies, has pushed further capital flows into emerging markets and caused a broad-based appreciation of EM assets. The analysts point out...