JPMorgan Dials Back Bullish Emerging-Markets Calls on Iran War

JPMorgan Chase & Co. dialed back the scale of its overweight recommendations on emerging-market currencies and local bonds due to the risks posed by the US attack on Iran.

Strategists led by Jonny Goulden, Anezka Christovova and Arindam Sandilya wrote in a note that reactions in emerging markets Monday morning had been negative but limited, presenting an opportunity to reduce some exposure as the conflict casts uncertainty over markets.