EM Markets sale-off spreading to DM

6 September, 2018

The current weakness on the developing countries financial markets is the longest since 2008. The similarities go further than that: as well as 10 years ago, the aggravation falls in autumn, when the funds actively review their investment strategies, and the reasons are – chronic deficits and high level of debt.

However, then the source of the problems was developed countries, and at one time there was a popular idea of decoupling, proving that the problems of the developed countries would not have a significant negative impact on the developing ones.

History showed how erroneous these hypotheses had been, and the financial world has proved to be complex and interconnected, and all the countries have not been spared the echoes of the global financial crisis. Nevertheless, developing countries recovered faster, providing an increasingly serious share of the world economy growth in subsequent years.

It is likely that this time, in case of serious problems on the financial markets of large developing countries, the developed markets will be able to maintain immunity only until a certain point when the weakening of the markets will be relatively organized. The supporters of a limited influence on the markets of developed countries may also recall that the Asian crisis of 1997 did not cause any recessions in developed countries. But in 21 years the economies of developing countries have multiplied several times.

10 years ago, countries were coping with the global crisis through joint and coordinated solutions, while the growth of populism and protectionism in politics in recent years risks exacerbating local problems and result in the loss of valuable time to find joint solutions.

Under these circumstances, the pressure on the global stock markets may only grow in the near future. S&P500 index lost 0.5% on Wednesday, increasingly keeping away from the historical highs achieved a week earlier, despite the strong economic data from the U.S. MSCI has decreased on Thursday morning by 1.8% in the area of one-year lows. The dollar index remains near 95.10 since the beginning of the month, having fallen by 0.2% on Wednesday. However, the development of pressure on EM market is able to develop the offensive of the American currency as haven.


Source link  
Cautious mood has returned to stocks

American markets ended trading on Wednesday with a slight increase. Asian bourses also experienced growth at the opening, but it was quickly...

Emerging markets rebound seems over

Asian markets have turned to a decline with a renewed force. After the rebound of last week, the index MSCI Asia ex Japan loses 1.2% and is only...

Rebound in Asian markets intensifies

On Friday morning, the demand for risks on the Asian bourses continues to recover. MSCI for Asia ex Japan is adding more than 1.2% this morning, having...


Reasons to rebound EM indices

Asian markets are adding after reaching 14-month lows the day before. Positive markets are supported by the reports about China's invitation to trade...

Strong data supports U.S. markets

Stocks of the Emerging Markets remain under pressure on Wednesday morning, with positive sentiments prevailing in American markets following...

Pound press dollar on news about Brexit

Michael Barnier, the EU's top negotiator on Brexit, called a reaching of the agreement on the deal within next 6-8 weeks realistic. This news supported...


Brent reversed from resistance level

Brent Crude Oil recently reversed down sharply from the major, multi-month resistance level 79.50 (which has reversed the price multiple times from the...

The price for trade uncertainty

The markets are cautiously on buy for American stocks, and the dollar adds on fears that trade conflicts are seriously stifling the business sentiment...

Chinese markets under pressure

The British pound maintains its position at 1.3020 on Thursday morning after rising by 1.2% from 1.2870 on Wednesday on the tone softening of the EU...


In the past 24 hours Bitcoin has gained 5.55% and reached $6660.25887873. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.5919% and is now at $1.1596. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -7.88% and is now at $209.678976747. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets91%
2FXTMFXTM88%
3HYCMHYCM87%
4Alfa-ForexAlfa-Forex86%
5FxProFxPro85%
6FIBO GroupFIBO Group84%
7OctaFXOctaFX83%
8HotForexHotForex82%
9FXCMFXCM80%
10AvaTradeAvaTrade77%
  


Share: