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EM suffered biggest quarterly outflow since Great Recession

According to the latest figures from JPMorgan asset management, the emerging market equities suffered their biggest quarterly outflows since 2009, a time when the world was reeling in Great Recession. With better prospects in the United States under Donald Trump’s Presidency and a faster pace of hikes in 2017, investors shunned emerging markets’ equities and bonds.

According to JPMorgan, investors have pulled out $38.4 billion from the emerging market debt and equities and that is the biggest quarterly outflow in seven years. The China remains the single biggest risk in the emerging market. After Donald Trump got elected in November, the depreciation of the Chinese yuan accelerated against the dollar, forcing the People’s Bank of China (PBoC) to reign on liquidity in order to prevent the yuan from sliding fast. However, that has pushed the borrowing cost of yuan for overnight loans to second highest on record at 61.3 percent last week.

One of the biggest risks in the emerging markets is corporate defaults on their dollar commitments in 2017 as the dollar and the interest rate rises.

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2017-02-24 21:06:35
0m

February 24 19:00 UTC Released

AREconomic Activity YY*

Actual

-0.1 %

Forecast

-0.6 %

Previous

-1.4 %

February 24 15:30 UTC Released

USECRI Weekly Annualized*

Actual

10.5 %

Forecast

Previous

11.1 %

February 27 00:30 UTC 25062506m

AUCompany Profits Pre-Tax*

Actual

Forecast

Previous

3.6 %

February 27 00:30 UTC 25062506m

AUBusiness Inventories*

Actual

Forecast

0.5 %

Previous

0.8 %

February 27 00:30 UTC 25062506m

AUGross Company Profits*

Actual

Forecast

8.0 %

Previous

1.0 %

February 27 09:00 UTC 30163016m

EZLoans to Non-Fin

Actual

Forecast

Previous

2.3 %

February 27 09:00 UTC 30163016m

ITFlash Trd Bal Non-EU*

Actual

Forecast

Previous

5.68 bln EUR

February 27 09:00 UTC 30163016m

EZMoney-M3 Annual Grwth*

Actual

Forecast

4.8 %

Previous

5.0 %

February 27 09:00 UTC 30163016m

EZLoans to Households*

Actual

Forecast

2.2 %

Previous

2.0 %

February 27 10:00 UTC 30763076m

EZCons Infl Expec

Actual

Forecast

Previous

14.5

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