Emerging Markets Slide Weeks Before Key Votes as Political Risk Hits Colombia, Peru and Turkey
Updated
Updated · Bloomberg · May 24
Emerging Markets Slide Weeks Before Key Votes as Political Risk Hits Colombia, Peru and Turkey
1 articles · Updated · Bloomberg · May 24
Emerging-market rallies are being knocked off course by a renewed burst of political turmoil, with investors pulling back across Latin America and Eastern Europe.
Weeks before presidential votes, Colombia and Peru are selling off as traders reassess the chances of left-wing candidates winning.
Bolivian bonds have tumbled as anti-government street protests threaten food and medicine supplies into the capital.
Turkey’s markets also tanked after a court removed the leader of the country’s main opposition party, underscoring how fast political shocks are hitting risk assets.
Why do markets punish both left-wing victories and right-wing instability, suggesting a deeper crisis of governance in emerging economies?
Can emerging market democracies reconcile voter demands with the investor need for predictable, stable policy?
As the US confronts Chinese influence in Latin America, which nations will benefit from this renewed great power competition?