Stocks struggle near three-week lows but no respite for emerging markets

Fresh sparring between Washington and Beijing over trade kept up pressure on world markets on Wednesday, with equities struggling and emerging currencies mostly weaker, led by the Indian rupee hitting a record low.  A bruising session in Asia took MSCI’s main Asia-Pacific ex-Japan index to a 10th straight day in the red, its longest losing streak since September 2000. Bourses in Shanghai, Hong Kong and Tokyo all closed lower, taking emerging equities to a new 15-month low. MSCI’s all-country equity index inched up marginally, looking to extend two sessions of modest gains that had snapped six straight days of losses. Read More @

Around the World, Markets Are Falling

Cratering currencies, rising inflation, jumpy investors: A financial panic is again gripping some of the world’s developing economies. The sharp sell-off of emerging market currencies, stocks and bonds seems to stand in stark contrast to the United States, where a nearly decade-long bull market continues amid buoyant economic conditions.
Higher interest rates in the United States and a stronger dollar rebalance the risks and rewards for investors the world over, and act as a kind of financial magnet, pulling them out of riskier investments. When we’ve seen this before — in the Mexican peso crisis of 1994, the Thai baht collapse of 1997 and the Russian default of 1998 — investors had to contend with spillover of trouble from one country to others, dragging down economic growth or causing market stress. Read More @


High Risk Investment Warning:

Please note that Forex and other leveraged trading involves significant risk of loss, It is not suitable for all traders and you should make sure you understand the risks involved, it is recommended that you seek an independent advice, if necessary.

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