What the US Government Shutdown Means For Emerging Markets

Closed until further noticeThe Fed will delay the tapering of its bond buying program in response to the US government shutdown. For emerging markets this means a slower pace of currency depreciation into year-end, and the potential for limited short-term appreciation in markets that may have over-corrected, like Turkey and Indonesia. With currency depreciation slowing, fourth quarter GDP results may surprise slightly to the upside. The dollar-denominated ETFs that track local Turkish and Indonesian stock markets both increased 4% on the news.

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