Emerging Market Liquidity Update: Red and Orange!

-

Emerging Market Liquidity Update: Red and Orange!

 

·                     Cross-border capital inflows to Emerging Markets still remain well-below their pre-2008 heights and in March 2021 large outflows got the upper-hand

 

·                     The quality mix of liquidity relies heavily on the generosity of Central Bank policy-makers than on private sector cash generation. This skew reflects still weak corporate profitability, and it is likely to keep EM currency markets soft

 

 

 

Comments

Post a Comment

Popular posts from this blog

China and Emerging Market Liquidity December Update: China, The US Dollar and Emerging Markets

-
China and Emerging Market Liquidity Update: China, The US Dollar and Emerging Markets   Emerging Market Liquidity conditions improved noticeably in November 2023, according to the jump in our EMLI™ index to a reading of 55.1. This rise was underpinned by buoyant cross-border capital inflows from foreign investors (index 68.6); an impressive rebound in private sector liquidity generation (index 54.1), reflecting signs of firming commodity markets, and further signs of easing by regional Central Banks (index 63.7), noticeably China (index 72.1). This provides a solid base for prospective EM stock market gains in 2024.       See our latest published research, China and Emerging Market Latest GLI™ – December 2023   For further information, please contact us at research@crossbordercapital.com  
Read more

The 2024 US dollar outlook

-
US Dollar 2024 Outlook: Vulnerable to Looser Fed, But Supported by Strong Uptrend in Capital Flows   Structural capital inflows underpin the uptrend in the real trade-weighted US dollar basket. Notwithstanding a likely temporary 2024 pull-back in the US dollar as the Fed starts to ease, we expect medium-term trend weakness in both the Euro and Asian currency baskets.     See our latest published research, Global View: US Dollar 2024 Outlook: Vulnerable to  Looser Fed, But Supported by Strong Uptrend in Capital Flows - 23 rd December 2023   For further information, please contact us at research@crossbordercapital.com        
Read more

Global Liquidity Update - December 2023: Devastation or Liquidity Deluge?

-
Global Liquidity Update - December 2023: Devastation or Liquidity Deluge?   Our Global Liquidity Index (GLI™) hit 25.9 at end-November 2023. This step-up in the pace of expansion confirms the steady liquidity uptrend in-place since October 2022. It underpins the bull market in risk assets. Many remain sceptical of holding risk assets, nervous that the World economy is about to plunge into the dark abyss of recession. Yet, bull markets always climb a ‘wall of worry’ and this one may be no different.       See our latest published research, Global Liquidity Latest – December 2023   For further information, please contact us at research@crossbordercapital.com  
Read more