Emerging markets experienced significant declines today, driven by growing recession fears linked to US trade policies. The MSCI index, which tracks equities across developing nations, fell by 0.6%, marking the largest weekly downturn in over a month.
Banking stocks from Japan to Europe saw the most substantial drops, with premarket declines also observed on Wall Street. Investors are closely watching the U.S. jobs report and statements from Federal Reserve Chairman Jerome Powell.
Currency markets saw a 0.2% increase against a weaker dollar, achieving the largest weekly gain since early March. The weaker U.S. dollar, influenced by trade tensions and currency adjustments, presents a mixed impact, potentially easing debt servicing while increasing default risks for emerging economies.