More Bad News for Emerging Markets: Overnight, the Chinese Markit/HSBC Purchasing Managers’ Index (PM) report was released, and the news isn’t good.
Today’s China-induced “risk-off” trade sent emerging markets currencies into a sharp decline. As discussed before Turkey and South Africa have been hit the hardest recently and today touched fresh all-time lows.
Rising rates in the United States have sent shock waves across a number of emerging markets, particularly in nations with high current account deficits. At the top of the list of most vulnerable emerging economies in 2014 is Turkey. The country not only faces a large current account hole that it needs to plug but also tremendous political uncertainty – a combination of risks that can be devastating for an emerging economy. In fact the political situation has become quite precarious in recent weeks.
The combination of higher than expected 3d quarter US GDP (see story) and surprisingly strong payrolls report (see story) have reignited fears of near-term Fed “taper”. And that in turn has woken up emerging markets bears that have been absent in recen…
This is a syndicated repost published with the permission of Sober Look. To view original, click here. Opinions herein are not those of the Wall Street…
This is a syndicated repost published with the permission of Sober Look. To view original, click here. Opinions herein are not those of the Wall Street…
Emerging markets currencies are getting hammered across the board today on the back of the FOMC minutes. Many are touching multi-year or even all-time lows. Here are some examples of the dollar strengthening against some major EMG currencies:Source: In…
As the realization of imminent reduction of the Fed’s ongoing stimulus program sets in, emerging markets come under pressure. It is becoming clear to investors that some of the strength in emerging markets in recent years was induced by the Federal Res…
As widespread unrest spreads across Egypt after the ousting of President Morsi, investors need to be wary of a growing trend affecting broader emerging markets.
Much of the unrest around the world is caused by one thing: Uprisings against governments and their inabilities to provide basic services to citizens with rising income levels.
Emerging markets are under pressure once again. The Turkish lira is touching new lows, driven by a number of factors, including civil unrest in Egypt and more importantly rising rates in the US. Turkey also surprised investors with a higher than expect…