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Emerging Market Stock Indices Fall

Investment from 3,600 USD

Expires: 16/03/2018

Product description

yearly returns

A fall in the cost of assets in emerging markets in the coming time will facilitate a significant outflow of capital, connected with expectations of a gradual rise in US Fed interest rate rises. As a result, the cost of borrowing will increase and potential returns for investors in emerging markets will fall. A rise in the key Fed rate will also facilitate a strengthening of the USD which will lead to investors trying to reduce volumes of assets denominated in emerging economies’ currencies. The value of these currencies will fall and investors will place assets in USD, thereby hastening the fall. Furthermore, a slowing in the growth of the global economy and expectations of a fall in demand for export goods/commodities from emerging economies will stimulate a fall in the price of their assets.

Investment period ends:

Expected yield is calculated according to 90% capital protection and the price of the base asset at expiry, equal to 41 USD.

Technical Analysis:

The index for developing markets price is close to the upper limit of the long-term downward trend from April 2015. Now there is a good point to enter the market with a short position: the price is close to the 200 daily moving average (high probability of a slide downwards). The closest resistance levels are 35.95 and 36.69. The closest meaningful support levels are 29.68, 28.48, 23.36 and 19.00.


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