Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

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.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

July 21 14:30 UTC Released

USECRI Weekly Annualized*

Actual

144.8 %

Forecast

Previous

2.4 %

July 21 14:30 UTC Released

USECRI Weekly Index*

Actual

2.6 %

Forecast

Previous

143.9 %

July 24 00:30 UTC 833833m

JPForeign Direct Investm't*

Actual

Forecast

Previous

52.4 bln $

July 24 07:00 UTC 12231223m

FRMarkit Serv Flash PMI

Actual

Forecast

56.7 %

Previous

56.9 %

July 24 07:00 UTC 12231223m

FRMarkit Mfg Flash PMI

Actual

Forecast

54.6 %

Previous

54.8 %

July 24 07:00 UTC 12231223m

FRMarkit Comp Flash PMI

Actual

Forecast

56.4 %

Previous

56.6 %

July 24 07:30 UTC 12531253m

DEMarkit Service Flash PMI

Actual

Forecast

54.3

Previous

54.0

July 24 07:30 UTC 12531253m

DEMarkit Mfg Flash PMI

Actual

Forecast

59.2

Previous

59.6

July 24 07:30 UTC 12531253m

DEMarkit Comp Flash PMI

Actual

Forecast

56.3

Previous

56.4

July 24 08:00 UTC 12831283m

RUMarkit Mfg Flash PMI

Actual

Forecast

57.2 %

Previous

57.4 %

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.