Trade war makes emerging markets trickier, investors face volatility

Implied volatility over G-7 currencies widens to 7-year high

It may be starting to sound like a broken record for emerging markets, with the twists and turns of U.S.-China trade tensions likely to dominate investor concerns this week.

That’s not to say Federal Reserve Chairman Jerome Powell’s two-day Congressional testimony and even the outcome of Monday’s meeting between Donald Trump and Vladimir Putin in Finland won’t have a part to play in driving sentiment.

Emerging-markets have become trickier to navigate as investors brace for outsized volatility. The gap between a JPMorgan Chase & Co. gauge of expected volatility in developing-nation currencies and a Group-of-Seven measure was at the highest