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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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March 29 14:00 UTC Released

USPending Sales Change MM

Actual

5.5 %

Forecast

2.4 %

Previous

-2.8 %

March 29 14:00 UTC Released

USPending Homes Index

Actual

112.3 %

Forecast

Previous

106.4 %

March 29 23:50 UTC 5252m

JPForeign Bond Investment

Actual

Forecast

Previous

149.4 bln JPY

March 29 23:50 UTC 5252m

JPForeign Invest JP Stock

Actual

Forecast

Previous

-580.4 bln JPY

March 30 00:00 UTC 6262m

AUHIA New Home Sales m/m

Actual

Forecast

Previous

-2.2 %

March 30 00:01 UTC 6363m

BRTJLP Lending Rate*

Actual

Forecast

7.50 %

Previous

7.50 %

March 30 06:00 UTC 422422m

ZAM3 Money Supply YY*

Actual

Forecast

7.90 %

Previous

7.91 %

March 30 06:00 UTC 422422m

ZAPvt Sector Credit Ext.*

Actual

Forecast

5.21 %

Previous

5.56 %

March 30 07:00 UTC 482482m

DESN State CPI MM*

Actual

Forecast

Previous

0.5 %

March 30 07:00 UTC 482482m

DESN State CPI YY*

Actual

Forecast

Previous

2.4 %

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