Emerging Markets Move in Lockstep With Developed Peers Amid Global Shock

EM trading like DM

Since the start of the Iran conflict, headline EM equities have corrected in line with DM peers outside of the US; optimism around a de-escalation has triggered a relief rally. Here are a couple of charts showing that growth forecasts are being cut, earnings sentiment is weakening, flows are reversing sharply and valuations have reset.