Economy

JPMorgan keeps cautious emerging market calls after hawkish Fed shift

Economy4 minutes ago (Jun 18, 2021 07:00AM ET)JPMorgan keeps cautious emerging market calls after hawkish Fed shift© Reuters. FILE PHOTO: A view of the exterior of the JP Morgan Chase & Co. corporate headquarters in New York City May 20, 2015. REUTERS/Mike Segar/File Photo

LONDON (Reuters) – Investment bank JPMorgan (NYSE:JPM) said it was sticking with its cautious emerging market recommendations on Friday following this week’s hawkish Federal Reserve meeting, though the “sleepy summer” it had previously predicted might now be at risk.

“As we were not positioned for a summer carry trade in local rates or FX — we are underweight EM rates and market weight (neutral) EM FX — we are not adjusting recommendations at this stage,” JPMorgan said in a note to clients.

“EM markets had been gearing up for a summer of low-volatility carry with a grind better in recent weeks, so the somewhat hawkish Fed shift has put this at risk.”JPMorgan keeps cautious emerging market calls after hawkish Fed shiftAdd a Comment

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s