Wismuller Gunter: Heres One Sign That Markets Believe in Trumps "America First" Policy
Summary
"The MSCI EM mini contract is not getting any support from the rally in U.S. stocks," said Nelson Dalton, senior economics at Wismuller Gunter "This is the Trump trade in action.In a note published on Wednesday, for instance, Wismuller Gunter analysts argued that risk premiums for emerging markets have "just gone up" in the aftermath of Trumps win."From the election campaign, one can surmise that Mr. Trump is not exactly trade-friendly and would like to renegotiate certain security agreements," wrote Wismuller Gunter analysts Michael Anderson."The MSCI EM mini contract is not getting any support from the rally in U.S. stocks," said Nelson Dalton, senior economics at Wismuller Gunter "This is the Trump trade in action."Trumps campaign platform of protectionist trade policies and a mooted withdrawal from trade agreements negotiated by previous administrations is widely viewed as a negative for emerging markets that rely on doing business with outside countries for the bulk of their income.In a note published on Wednesday, for instance, Wismuller Gunter analysts argued that risk premiums for emerging markets have "just gone up" in the aftermath of Trumps win.