“It’s a F**king Bloodbath” – Emerging Markets Collapse As Turkey Tantrum Spread

its a fking bloodbath emerging markets collapse as turkey tantrum spread

Throughout July, many sell-side analysts saw the ‘stability’ in EM assets as a sign that the worst was over and urged investors to pile back in to take advantage of ‘blood on the streets’ in EM at these cheap levels.

"It's a F**king Bloodbath" - Emerging Markets Collapse As Turkey Tantrum Spread

But, as one veteran EM trader in Brazil exclaimed to us this morning “this is a fucking bloodbath,” adding that “liquidity has disappeared” and as spooked retail investors pile out of ETFs (that their advisers said were no brainers), the pressure in real markets is explosive.

Emerging Market FX is indeed a bloodbath…

"It's a F**king Bloodbath" - Emerging Markets Collapse As Turkey Tantrum Spread

While Turkey’s Lira is the biggest loser on the week (and day), no matter where you look, it’s carnage…

"It's a F**king Bloodbath" - Emerging Markets Collapse As Turkey Tantrum Spread

The moves are massive but dwarved by Lira…

"It's a F**king Bloodbath" - Emerging Markets Collapse As Turkey Tantrum Spread

How much longer can “they” support Emerging Market stocks? Debt and FX have already got the message…

"It's a F**king Bloodbath" - Emerging Markets Collapse As Turkey Tantrum Spread

And how long before US stocks catch down to the global stress?

"It's a F**king Bloodbath" - Emerging Markets Collapse As Turkey Tantrum Spread

For now Globally Systemic Banks are seeing risk pressures once again…

"It's a F**king Bloodbath" - Emerging Markets Collapse As Turkey Tantrum Spread

Offshore yuan is starting to crack again…

"It's a F**king Bloodbath" - Emerging Markets Collapse As Turkey Tantrum Spread

And EURUSD has broken the 1.15 shoulder…

"It's a F**king Bloodbath" - Emerging Markets Collapse As Turkey Tantrum Spread
Read on ZH

Author: HEDGE

Hedge Accordingly was founded ahead of the global financial crisis in January of 2008, with the goal of providing our readers our unique take on The Latest News on Wall Street, Stocks, #Politics and Business news. Hedge Accordingly produces both original, and aggregated #Wallst news content from top publishers around the world. We curate aggregated content covering the latest news on politics, stocks, wall street, and the tech industry. We also provide free stock charting, quotes and a bitcoin, forex and currency exchange. Learn More About HEDGEaccordingly.com