BLOOMBERG.COM
It’s not just emerging-market stocks that have shed their umbilical link to oil and commodities. Bonds and currencies are also breaking free.
It’s not just emerging-market stocks that have shed their umbilical link to oil and commodities. Bonds and currencies are also breaking free.
Stocks in the developing world posted the best start to a year since 2009 even as oil capped its worst first half in 19 years. That’s partly because the weight of energy companies in the benchmark index has steadily declined, while technology companies became the dominant industry group.
But now, even assets joined at the hip with oil and commodities are heading for a split. Emerging-market currencies and local-currency bonds, which had retained their positive correlation with those raw materials for most of the last three years, are now moving in the opposite direction...Read more>