According to Reuters, the US-based rating agency, Standard & Poors (S&P) in a recently published report argued that the threat of heightened US protectionist measures, geopolitical tensions, and other factors weigh on growth prospects in emerging market economies. Below are some other key takeaways from the publication, as reported by Reuters.
“Risks prevail for emerging markets, despite the Fed’s more dovish stance.”
“Fed’s more dovish stance is supporting capital flows to emerging markets, easing financing conditions, alleviating pressure on currencies.”
“Risks loom after the fragile truce between the US and China is now tumbling.”
“Macroeconomic conditions remain soft and outlooks have weakened across key emerging-market economies.”
“S&P remains constructive on emerging markets’ sovereign fundamentals, though within such broad asset class, there are many highs and lows.”
“Trade tensions, slower global economic growth, and commodity price volatility could undermine corporations’ profits.”
“Volatility could resurface and sour financial conditions for banks in emerging markets, as trade, GDP growth, and political risks mount.”
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