Bloomberg Market Wrap 9/3: U.S. Dollar, Emerging Markets Death Cross

The video discusses the recent movements in the dollar following the ISM report, highlighting that the dollar dipped slightly but remains strong. Analysts attribute this to factors like tariffs, potential ECB policy shifts, and interest rate differentials. The video also examines the concept of a 'death cross' in the EM equity market, noting its historical impact and potential future implications for both EM and US equities.

What is one reason analysts believe the dollar's dip is temporary?

• The ECB is increasing interest rates.

• Risk on hedges are being unwound.

• The ISM report was positive.

• The dollar has reached its lowest level since 2017.

What is a 'death cross' in the context of the EM equity market?

• A temporary market correction.

• A bearish signal where the 50-day moving average falls below the 200-day moving average.

• A bullish signal indicating a market rally.

• A situation where the 200-day moving average goes above the 50-day moving average.

What historical event is associated with a 30% decline in the EM equity market?

• The 2015 death cross.

• The 2016 market rally.

• The 2017 dollar rally.

• The 2018 interest rate hike.

What is the current status of the EM equity index according to the transcript?

• It is 10% below its recent peak.

• It is unchanged from last year.

• It is at its peak.

• It is 20% above its recent low.

What could the recent death crosses indicate for US equities?

• An increase in interest rates.

• A bear sign over the medium term.

• A stable market with no changes.

• A potential bull market.