Emerging Market Turmoil

Emerging markets are taking a battering as investors withdraw at the prospect of higher global interest rates, exposing their economic and political weaknesses

Mexican peso hits record low — what now?

Strategists take opposing views on currency’s next move

Interactive

100 dollar notes currency US dollar bills ©Dreamstime
The prospect of higher US rates is putting EMs under renewed pressure
– Hard Currency

Doubts cast over fall in EM reserves

StanChart data suggest central banks are not selling assets to prop up currencies

Debt clouds hang heavy over emerging Asia

Export route to economic growth also blocked as world trade slows

Emerging world needs right kind of FDI

Rise of cross-border deals masks a lack of greenfield investment

NASA/Gianni Woods
©NASA

EM flows reveal fear of the Fed

Flows fall on monthly basis and turn negative on weekly basis as Fed lift-off approaches

FDI to emerging markets falls in Q1

India is top destination with near tripling of capex as other countries fall behind

EM funds suffer biggest outflow in 7 years

Chinese equities hardest hit as investors withdraw $7.1bn in 4 days

Emerging market bond sell-off gathers pace

Monthly outflow of $4.4bn is largest since ‘taper tantrum’

EM trade slide reveals deep frailties

The biggest emerging market trade slide since the financial crisis derives mostly from China

Capital flows to EM seen at post-2009 low

Investors put off by sluggish growth and rising US rates

Fischer says EMs can weather US rate rise

Fed policy maker speaks amid angst over global repercussions

FDI underlines divergence in EM growth

Asia outperforms; individual countries see large gains and losses

Emerging markets braced for Fed acid test

First rate increase in nearly a decade by the Federal Reserve would shake up central banks

EM investors withdraw up to $15bn in May

Outflows so far this month provoked by ‘bond tantrum’ says IIF

EMs v the Fed: India wins, Brazil loses

Things have changed since the taper tantrum of 2013, for better and worse

EM growth slowest in six years, says IIF

Real activity and business surveys lead downturn, though financial indicators show room for recovery

EM outflows soar in past three quarters

Exodus of funds indicates fragile confidence in some of the largest developing economies

Fed pause gives emerging markets respite

US central bank’s decision on interest rate rise may change the shape of the global recovery

EM bank lending conditions worsen

Demand for credit plunges across regions and across sectors

Are emerging market stocks cheap?

EM stock valuations lag DM valuations by the most in a decade, suggesting they are undervalued

EMs turn local as dollar rally pauses

Differentiation is key again but liquidity shortage is accentuating currency movements

EMs will struggle with secular stagnation

Policy makers have few options as they try to raise productivity, says Alan Beattie

Prepare for a rough ride in EM bonds

Good times are ending for corporate borrowers in emerging markets

EM central banks: doves into hawks

Investors see emerging market central bankers as doves. But they are likely to turn hawkish

Stuttering emerging markets add to fears

Lagarde calls for action as developing nations are hit by strong dollar and weak commodity prices

Emerging market banks face tough challenge

Slowdown in loan growth could lead to better credit allocation

Mutual funds deny EM systemic risk

Regulated funds only own small slice of emerging market assets, says trade body

Reserves in emerging markets shrink

Concerns over US policy trigger first fall in two decades

Moody’s warns on EM dollar finance costs

Brazil, Turkey and South Africa likely to face particular problems

IMF fears emerging markets instability

Lagarde talks of renewed ‘taper tantrum’ when US raises rates

SHARE THIS QUOTE