Citi says clients cautious on emerging markets after four weeks of inflow By Reuters


© Reuters. Woman works at a workshop of a textile manufacturer in Binzhou, Shandong

LONDON (Reuters) – Investment bank Citi said on Monday that its clients had turned cautious on emerging market assets over the last week, with both real money and leveraged investors pulling out funds following four weeks of inflows.

“Perhaps anxiety over U.S.-China trade talks, negative data surprises out of Europe, corrective move lower in equities etc. weighed on investor appetite,” Citi’s Dirk Willer wrote in a note to clients, referring to the week ending Friday Feb. 8.

There was some divergence across regions, Citi found in its research, based on flows of its own clients.

Outflows from Latin American markets were dominated by real money investors – a category that includes mutual, pension and sovereign wealth funds – pulling out of Chilean, Colombian and Peruvian assets. Leveraged money, which tends to be more speculative in nature, fled Brazilian assets, it added.

Meanwhile, exposure to assets from Central and Eastern Europe, Middle East and Africa continued to expand, with special emphasis on the high-yielding currencies in the region, Citi added.

EM flows: https://tmsnrt.rs/2TPTqwA

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *