EM markets are likely to enjoy supportive conditions
LONDON | By Barclays analysts | EM markets are likely to enjoy supportive conditions over the next few weeks. The resolution of the US government shutdown, expectations of QE tapering pushed further into 2014, the emergence of some EM re-coupling to stronger global manufacturing and still-attractive EM valuations should all be helpful factors. Liquidity considerations are likely to become a less important market driver, and higher-yielding EM assets, particularly in EM credit, should attract further support where bottom-up fundamentals allow.