A rebound in emerging market currencies has helped to calm nerves in markets with S&P 50o futures up 12 points after a 40 point fall on Monday.

The Turkish lira is leading the EM basket today as the most-beaten-down currencies this year bounce:

EM currencies

It’s a bad sign to see the laggards leading the way because it points to a rebalancing rather than a fresh, positive story. Unless the market uncovers some good news (look to tomorrow’s US data) this bounce won’t last.