Emerging Markets

In many different emerging markets, the economy has unexpectedly weakened. We are seeing downturns everywhere from Mexico and Brazil in Latin America to Indonesia, India and Thailand in Asia. At this point there is no common thread on why…

If you look at the last two posts on this site from Marc Chandler and from Sober Look the connection between Fed tapering and money flows is clear. Hot money is flowing out of emerging markets and into Europe.

For those who don't watch these currencies on a daily basis, these sell-offs seem to happen in spurts - almost at random. But there is a pattern here, particularly in the past few months. Investors are dumping these currencies during…

The US dollar stands at the fulcrum. Investment flows are leaving emerging markets, with currencies from Brazil,India,Indonesia and Mexico being hit the hardest over the last few sessions. The MSCI Emerging Market Index is off 4.5% over the…

Three articles in this Wednesday and Thursday's Wall Street Journal highlighted that data point to a continued cyclical recovery despite a lot of doom and gloom from all sides. Let me post extracts from those articles I would like to…

We think it would be a good idea to take a step back to see how EM FX and equities have performed during this recent bounce. Many EM currencies peaked against the dollar and the euro in early May, but then gave up ground, especially after…

We learned today that China's trade volume unexpectedly 3.1% year-on-year in June with both imports and exports down. This unexpectedly weak data point highlights the risk of growth deceleration in emerging markets generally and China…

Updates of most important data flow in the week ahead for 1 Jul 2013

The “lesson” is over in China. Brazil is in flux and there is some room to be optimistic. Indonesia is finally increasing subsidized fuel prices. The Turkish central bank is stepping up even more. The Czech National Bank is moving closer…

Floating emerging markets currencies have been under tremendous pressure over the past month, as active investors move out. Slowing growth, political instability, and weaker demand for natural resources have all contributed to the sharp…