JPMorgan Chase lowers ratings for emerging market currencies and interest rates due to high uncertainty.

Due to the high level of uncertainty brought about by the Middle East conflict, JPMorgan Chase has downgraded its rating on emerging market foreign exchange and local currency rate assets from overweight to neutral. Just three days ago, the bank's strategists had just reduced their recommendation for emerging markets from overweight. "The conflict between the U.S. and Iran has entered its sixth day, and emerging markets still face significant uncertainty," strategists Jonny Goulden, Anezka Christovova, Arindam Sandilya, and Michael Harrison wrote in their report on Thursday. Taking advantage of Wednesday's rebound, they cut back on the remaining small overweight positions in emerging market foreign exchange and rate assets. Energy prices and their impact on economic growth and inflation remain the primary uncertainties. The strategists acknowledge that given the rapidly changing situation, adjustments to positions may be necessary in the coming weeks.