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Morgan Stanley reported Monday that emerging stock markets are turning bullish across the board, although Friday's stock market crash is worrying; however, the reversal of the U.S. yield curve is not particularly worrying, and more importantly, the overall economic data of Europe and China.
Morgan Stanley said it still sees emerging markets more often and that Friday's global stock market crash was a cause for concern after a full-blown uptick on Monday. Although the United States has not had many cases of reproductive rate reversal in recent years, the second time in 2001-2002 and 2006-2007. Generally speaking, the return of this second credit market is quite strong, and the spreads show a neutral turn to positive.
On the Asian side, the report points out that the market for RMB and fixed income (bullish on both FX and rates) is still bullish and continues to short the Po/RMB sector, as more foreign investment is expected to flow into the bond and securities markets of the two regions. As for the recent coal consumption and car sales figures, it also shows that China's economy is growing green shoots, and the economy may be near the edge of a rebound. As for the increase of the front end of the Chinese rate of return curve, and the return of the US dollar/RMB forward points to a positive value, it also shows that interest spreads have increased.
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