JPMorgan goes 'underweight' EM currencies as China risks rise

September 24, 2021 6:44 AM EDT

FILE PHOTO: A JPMorgan logo is seen in New York City, U.S., January 10, 2017. REUTERS/Stephanie Keith/File Photo


Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

LONDON (Reuters) - Investment bank JPMorgan turned 'underweight' on emerging market currencies on Friday, warning a slowdown of China's economic growth, troubles in its property sector and less supportive global monetary policy were all growing risks.

"EM growth concerns from COVID-19 drags are receding but risks that China’s growth slowdown along with property sector drag will impact EM more broadly have risen," the bank's analysts said in a note.

"The Fed stance does not help EM either," they added. "EM currencies cannot rely on a dovish Fed, with the best of global liquidity conditions likely behind us."

JPMorgan analysts downgraded the entire Chinese property sector last week and have warned there could be as many as 11 defaults by riskier, 'high-yield' Chinese firms.

(Reporting by Marc Jones, editing by Karin Strohecker)



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

Analyst Comments, ETFs, Reuters

Related Entities

JPMorgan