{"id":35260,"date":"2018-06-19T18:36:49","date_gmt":"2018-06-19T23:36:49","guid":{"rendered":"http:\/\/olduvai.ca\/?p=35260"},"modified":"2018-06-19T18:36:49","modified_gmt":"2018-06-19T23:36:49","slug":"emerging-market-contagion-goes-global-as-fund-outflows-spike-most-in-over-4-years","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=35260","title":{"rendered":"Emerging Market Contagion Goes Global As Fund Outflows Spike Most In Over 4 Years"},"content":{"rendered":"
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Emerging Market Contagion Goes Global As Fund Outflows Spike Most In Over 4 Years<\/span><\/a><\/h3>\n<\/div>\n
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Despite promises from various foreign officials that just a little more intervention and just a few more billion in bailouts from Lagarde will ‘fix’ the “short-term speculator-driven” crisis in Emerging Markets (even as Brazil admits failure<\/em><\/a>), things are escalating way beyond the idiosyncratic fears of Argentina and Turkey<\/strong><\/em><\/a>…<\/p>\n

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As investors Emerging Markets’ anxiety spreads globally<\/strong> with ETF outflow across all EM ETFs soaring to the highest since Jan 2014…<\/p>\n

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In fact, as Bloomberg reports, outflows from U.S.-listed exchange-traded funds that invest across developing nations as well as those that target specific countries totaled $2.7 billion in the week ended June 15, the most in over a year and more than seven times the previous week<\/strong><\/em>.<\/p>\n

The ‘baby’ is being thrown out with the ‘bathwater’ as even countries with solid prospects for growth and debt financing haven\u2019t been immune to the selloff<\/strong>. South Korea\u00a0and\u00a0Thailand, which have current-account surpluses, are among the six-worst emerging currencies this month.<\/p>\n

\u201cThe statistics itself reflect worries about emerging markets in terms of the growth outlook, in terms of what the Fed tightening means,\u201d said\u00a0Sim Moh Siong, a currency strategist at Bank of Singapore Ltd.<\/p>\n

\u201cWe\u2019re starting to see a blurring of the differentiation between current-account deficit currencies and current-account surplus currencies. That reflects the worries about trade-war jitters.\u201d<\/strong><\/p><\/blockquote>\n

The last week has seen derisking everywhere…<\/p>\n

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Seems like EM stocks have a long way to fall…<\/p>\n

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 <\/p>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Emerging Market Contagion Goes Global As Fund Outflows Spike Most In Over 4 Years Despite promises from various foreign officials that just a little more intervention and just a few more billion in bailouts from Lagarde will ‘fix’ the “short-term speculator-driven” crisis in Emerging Markets (even as Brazil admits failure), things are escalating way beyond […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[6525,1992,1732,4318],"class_list":["post-35260","post","type-post","status-publish","format-standard","hentry","category-economics","tag-capital-outflows","tag-contagion","tag-emerging-markets","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35260","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35260"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35260\/revisions"}],"predecessor-version":[{"id":35261,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35260\/revisions\/35261"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}