Battered emerging markets recover as investors reverse Trumpflation trade
Tokyo — The dollar and US bond yields fell on Monday as investors reversed a "Trumpflation" trade that has gripped markets since the US elections, after oil prices slid on the fear that producer countries meeting this week could fail to agree an output cut. Although Brent crude futures last traded at $47.02 a barrel, almost flat on the day, prices had been down by as much as 2% in early Asian trade, following on from a 3.6% fall on Friday as doubts arose over whether oil cartel Opec would reach a deal later this week. Prospects of reduced upward pressure on inflation from oil prices, prompted investors to temper the expectation for rises in US interest rates, bringing down treasury yields and the dollar.
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