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

EM investors withdraw up to $15bn in May

Portfolio outflows provoked by ‘bond tantrum’ says IIF and may be taste of things to come


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

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

Emerging market currencies extend slide

South African rand touches 13-year low

Real and rupiah lead EM currency slide

But some respite for Turkish lira on central bank intervention

Jobs report deepens emerging market rout

Scale of the week’s sell-off sparks fears of a new taper tantrum

Brazil inflation hits highest in a decade

Rising prices add to woes confronting Rousseff government

South America seeks new economic model

End of commodities boom opens dangerous trade and financing gaps

Fed may add to emerging markets pressure

Sending a strong signal on US rate rises could turn screw tighter

Emerging markets grapple with rouble fall

Investors unclear if differentiation or contagion will follow

EM currency sell-off claims bigger scalps

Mexico, long seen as stable, has begun to become unstuck

EM rout highlights China currency caution

Renminbi remains a bastion of stability amid the turmoil

Dollar rise set to harm emerging markets

Competitiveness outweighed by sliding confidence and soaring debt

Oil and dollar hammer emerging markets

Developing currencies fall to 14-year low

The good, the bad and the ugly of EM debt

From Mexico to Venzuela and yields of 3.7% to 18%

Hawkish Fed hits emerging market currencies

Dollar strengthens across the board as QE3 ends