We have, over the past two weeks, spent quite a bit of time documenting the veritable collapse of EM stocks, bonds, and FX in the wake of China’s move to devalue the yuan.
The yuan deval effectively telegraphed Beijing’s concerns about the economy, confirming fears that the situation was worse than the NBR is willing to admit and putting further pressure on commodity prices which are now sitting at their lowest levels of the 21st century.
Now, with EM in turmoil from Brazil to Malaysia, Bloomberg is out with the following map which sums up the carnage by showing just how many EM equity markets are in or closing in on bear market territory.
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