EQUITIES
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Jobless recovery
US GDP data were enough to halt the return of risk aversion, but risk appetite depends on jobs data, writes John Authers
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Market Overview: Equities put in robust showing but dollar continues to tumble
Equity markets across the globe made strong gains as investors put their recent concerns about inflation to one side.
Q&A: Mark Mobius on Emerging Markets
Few investors are better placed than Mark Mobius, the Franklin Templeton fund manager, to make sense of the recent turmoil in emerging markets. Mr Mobius answers your questions on emerging markets.
Commodities ‘bubble may be about to burst’
The recent fall in commodity prices may have signalled the end of the sector’s bull run as higher interest rates will curb demand growth, said one of the UK’s largest pension funds.
Markets slide as risk aversion rises
Global markets were hit by fresh turbulence as investors fled riskier assets such as shares and commodities in favour of government bonds and cash. Emerging markets and currencies fell heavily, as did gold, silver, copper and other metals.
Fearful fund managers revert to cash
Fund managers are shifting assets into cash because of the turmoil in global financial markets, according to a Merrill Lynch survey. A net 29 per cent of managers said they were “overweight” cash compared with 18 per cent in May.
BIS says asset risk worries behind markets fall
Share prices have been falling because investors have become more nervous about risky assets, not because the outlook for companies has worsened, according to the Bank for International Settlements.
Lingering inflation concerns likely to fuel volatility
Global financial markets are braced for further turbulence as attention returns to inflation data this week. Last month’s larger-than-expected rise in US core inflation fuelled a sell-off in risky assets and resulted in a sharp increase in volatility.
Turkey raises rates to tackle inflation surge
Turkey’s central bank has raised interest rates by 175 basis points to 15 per cent, its first increase in five years, in an attempt to calm financial markets battered by a heavy fall in the value of the lira.
Foreign institutional investors shun Indian stocks
Foreign institutional investors have continued to sell Indian equities despite calmer market conditions, official figures show, raising concerns over how the country will finance a growing current account deficit.
Turmoil is test for investors’ staying power
Is it over yet? Investors in developing markets are now emerging from the storms of the past fortnight. What observers wonder is if investors will stay and weather the latest turbulence or turn tail and head for the safety of their home markets, leaving emerging economies reeling.
