Emerging Markets: Risk aversion resurfaces - Rabobank

The research team at Rabobank explains that the selling pressure on the CEEMEA currencies resurfaced as the impressive rebound in Chinese stocks proved short-lived.

Key Quotes

“The Shanghai Composite Index ended today’s session 2.3% lower amid fading optimism that recently announced measures to stimulate funding will provide the Chinese economy with sufficient support.”

“The downside trend in the SHCOMP Index remains intact and to reverse it a firm break well above the September 26 high at 2827.341 is required – a proper challenge for the bulls at the time when China is involved in a trade conflict with the US.”

“At the time of writing the Turkish lira was the weakest link on the day trading more than 3% lower against the broadly stronger US dollar. It seems that at least some market participants decided to take profits following the lira’s remarkable rally since the beginning of September.”