Clarity around the US presidential election and good news on the vaccine front have given markets a boost in recent weeks.
These developments have been particularly beneficial to emerging markets, where president-elect Joe Biden is seen as a globalist and thus likely to undo some of the disruptions brought on by the Trump administration. Global trade stands to benefit, also helped by the news that an Asian free trade agreement – the Regional Comprehensive Economic Partnership (RCEP) – has been signed.
In this week’s Strategy Espresso, we explore the prospects for emerging market debt and inflation, as well as the implications of a declining USD.
