How the Trade War Is Impacting Emerging-Market Assets

The video discusses the impact of global trade tensions on emerging markets, highlighting their correlation with China and increased volatility. It examines the outflows from exchange-traded funds and considers the long-term ramifications, including the potential for the dollar to become a haven currency, affecting local currency-denominated debt.

What is a key factor that makes emerging markets sensitive to global trade tensions?

• Their reliance on local trade

• Their correlation with China and global growth

• Their independent economic policies

• Their strong currency reserves

What does the JP Morgan emerging market currency volatility index measure?

• The volatility of emerging market currencies

• The growth rate of emerging markets

• The trade balance of emerging markets

• The stability of developed market currencies

What trend was observed in the exchange-traded fund tracking local currency emerging markets debt?

• An increase in inflows

• A decrease in volatility

• A stable performance

• The longest streak of outflows since last year

What could be a long-term effect of global trade tensions on supply chains?

• Increased reliance on developed markets

• Reconfiguration of supply chains

• Stability in trade relations

• Decrease in local production

How might the dollar's role change during periods of global trade tension?

• It might lose its value

• It could become a less attractive currency

• It could become a haven currency

• It might be replaced by the euro