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Credit Suisse cuts emerging markets weighting

Credit Suisse reduced the size of its “overweight” position on emerging markets to 5% from 15%, saying the region has a high correlation with US interest rates and commodities, and inflation risk was increasing.

In a summary of its global equity strategy, the brokerage said the growth in global emerging markets will slow to 6% to 6.5% from 7.5% last year, but it would remain more resilient than that in developed markets. Credit Suisse named India, Hungary and Turkey as the most vulnerable markets and said Hong Kong, Singapore, Korea and Malaysia were the best. (Reuters)