Volatility suppression eases fears of emerging markets contagion

EM volatility remains contained – for now

guillaume arnaud at societe generale
Guillaume Arnaud, Societe Generale

The latest outbreak of volatility in emerging markets, presaged by Russia's rapidly deteriorating relations with Ukraine, has left Russian securities undersold, and perhaps a buy for those with risk appetite, but there is little evidence to suggest that this instability will have long-term effects on volatility in the broader financial markets, at least for the moment. News that Russian troops were moving into the Crimea region of Ukraine broke on Friday, February 28, with the Vix, the world'