Appetite for EM risk is very limited and likely to remain so

The threat of hikes in the US weighs on sentiment towards emerging markets.

Standard Chartered notes...

The slowdown in the long-term flows to emerging markets - and greater volatility in short-term flows - linked to US monetary policy events (speeches, statements and the initiation of 'tapering') - makes us cautious on appetite for EM risk in coming months, despite already high aversion to this risk suggested by current prices