Bits & Bobs

This report covers the performance of EM equities, highlighting a strong 2Q26 followed by consolidation and shifting macro headwinds. It provides specific tactical views on South Africa and Brazil, and analyzes the impact of China's competitive pressure on European markets.

Key Takeaways

• 1.EM equities saw strong 2Q26 performance but face headwinds from a hawkish Fed and a stronger USD.
• 2.South Africa presents an attractive entry point trading at two-decade valuation lows with supportive EPS growth forecasts.
• 3.Brazil remains a preferred overweight due to inexpensive valuations relative to history, despite political and macro uncertainty.

Table of Contents

• First the Bits...
• EM WEEKLY KICKSTART
• EM Equities: 2H Outlook: Broadening Gains
• SOUTH AFRICA
• BRAZIL
• Brazil Marketing Trip Notes - Flow Reversal Worries; Balanced Allocations Between Commodity & Bond-Proxies
• And the Bobs...
• S&P 2Q earnings preview
• China competition in Europe

Document Preview

Page 1 of 5

Subscribe for full accessStart Free Trial