Emerging Markets Briefer

- FX: PLN and CZK rebound
• "With market concerns shifting slightly from Europe to the US, the downtrend in EUR/USD seems to have been halted for now, which has given some support to the EUR-sensitive EM currencies over the past month. Most notable have been the rebounds in PLN, CZK and HUF and we think that especially PLN and CZK could see further gains. On the negative side have been the USD-sensitive currencies like MXN, KZT, EGP, INR and ILS. It is also notable that the Asian currencies have not performed especially well despite continued talk about Chinese revaluation."
- Stock markets: Chinese stocks continue to underperform
• "The past month has been relatively good for the EM stock markets. A notable exception is the Chinese stock market that continues to slide on concerns about how sharp the expected slowdown in the Chinese economy will be."
DenDanske Emerging Markets Briefer 20100716

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