47 days ago • Posted by William Ramstein
Will emerging markets see capital flight ?
The MSCI Emerging Market Index of shares tumbled as much as 2.8% Friday, while the South African rand, and Turkish lira have both fallen more than 3% from Wednesday’s close. Emerging-market assets are falling out of favor as expectations for tighter global monetary policy and a revival of inflation reduce the relative appeal of risk assets. This week’s surge in U.S. yields is reminding many of the taper tantrum, when the Federal Reserve’s announcement that it would start winding back its quantitative-easing policy led to a spike in bond yields around the world. Source: Bloomberg