The problems of Argentina are pressuring emerging markets

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Futures world stock indices are down 0.2-1% due to threats from authorities to enter the United States roughly 6 September new duties on imports from China of $200 billion Plus another problem Argentina made themselves felt, when she asked about the acceleration of procedures for issuing credit from the IMF, which indirectly confirmed the presence of urgent problems in the economy. It is brought down on the 22% of the Argentine peso to the dollar on Thursday, up to 41 pesos per dollar. Also fell and other emerging-market currencies such as Turkish Lira, Russian ruble etc.
Thus, investors decided to move away from risk: trying to sell assets in emerging markets. Russian stock indexes fell, and the yield of OFZ grew up, which, in our opinion, speaks of the reduction in the share of non-residents. On Friday, the last day of the calendar summer, the Russian market closed with a negative value to force the above.
In addition, the worsening military situation in Syria, where the presence of Russian troops is also perceived by investors as a risk. This situation can be used by US for the base input of the second tranche of sanctions against Russia which are expected will enter into force at the end of November this year. The ruble weakened against the dollar because of the General negative background in emerging markets. The expectation of stable data on the labor market in the United States, which will be published in the first week of the calendar fall will support the dollar.
Viktor Veselov,
Chief analyst,