Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Goldman Sachs sees downside risks for emerging markets in 2017

    Goldman Sachs sees downside risks for emerging markets in 2017

    November 20, 2016
    Share
    Facebook Twitter LinkedIn WhatsApp
    *The Goldman Sachs logo is displayed on a post above the floor of the New York Stock Exchange, in this September 11, 2013 file photograph. Goldman Sachs Group Inc's quarterly profit fell 2 percent as weak bond-trading volumes hit revenue in the Wall Street bank's biggest business. The fifth-largest U.S. bank by assets reported on October 17, 2013 a third-quarter profit of $1.43 billion, or $2.88 per share. This compared with a profit of $1.46 billion, or $2.85 per share, a year earlier. REUTERS/Lucas Jackson/Files (UNITED STATES - Tags: BUSINESS LOGO)
    *The Goldman Sachs logo is displayed on a post above the floor of the New York Stock Exchange.  REUTERS/Lucas Jackson/Files.

    *Local-currency bond rally to slow, the bank said in report
    *Chile peso, South Africa rand poised to rally: Goldman Sachs


    20 November 2016, new york —
    Investing in emerging markets will be trickier in 2017, says Goldman Sachs Group Inc.

    The New York-based bank laid out its expectations for developing nations in a report Friday. Below are some of the highlights.

    1. Downside risks have increased after Donald Trump won the U.S presidential election, which means a rally in local-currency bonds so far this year is unlikely to be repeated, Goldman Sachs said. Still, investors may want to bet on currencies that are less exposed to protectionist trade policies. The bank recommends going long Brazil’s real versus iron ore. Chile’s peso and South Africa’s rand may also appreciate “significantly” in 2017 and the nations’ current-account deficit may shrink next year.

    2. Turkey’s lira and Malaysian ringgit may not fare as well as Goldman Sachs expects to see “discontinuous foreign exchange depreciation if we see a proper rates tantrum over the next 12 months.”

    3. Stability in China is Goldman Sachs’s baseline scenario, but it never hurts to hedge. In addition to shorting the onshore yuan directly, the bank said it makes sense to protect against risks in low-yielding Asian currencies like the South Korean won, Malaysian ringgit, and the Singapore dollar.

    4. Goldman Sachs said investors should brace for oil-related shocks in the short term and the risk of higher interest rates in the long run. On the bright side, the bank said corporate earnings across developing nations should increase.

    *Elena Popina – Bloomberg

    Related News

    IMF approves $367 million disbursement to Ghana after fourth review

    Nigeria backs BRICS push for global financial reform

    PAPSS and Interstellar unveil African Currency Marketplace

    E-book
    Resilience Exhibition

    Latest News

    NNPC/Shell’s ‘Vision First’ initiative in Lagos benefit thousands

    July 8, 2025

    AEC condemns Greenpeace for ‘calculated attacks’ to hinder energy development

    July 8, 2025

    Ghana launches task force to curb gold smuggling losses

    July 8, 2025

    Oil prices ease as traders assess US tariffs and OPEC+ output boost

    July 8, 2025

    Rivers Govt warns residents of imminent flood risk

    July 8, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.