Investors in emerging economies – particularly Asia – remain jittery amid turmoil in their stock exchanges and as currency values tumble.
The problems have been triggered by concerns about the expected scaling back by the Federal Reserve of its stimulus measures in the US.
Much of the money that the Fed has been printing has found its way into those developing countries.
Fears that the cash flow could be reversed prompted a sell-off of shares along with currency slumps in places like Brazil and Thailand, and particularly Indonesia and India:
Jim Walker with the economic research firm Asianomic explained why they have been hardest hit: “The fact is that India and Indonesia were standouts in terms of their current account deficits. Everywhere else in the region really is running a current account surplus. And if you look at the way currencies have behaved over the course of the last month they’re really not that much changed from a month ago, whereas in India and Indonesia the changes have been pretty spectacular.”
Those two countries may be suffering most, but the effects are also rippling out through the stock markets and currencies of Japan, China, Australia and New Zealand.
Economists said things could settle down once the Fed’s plans for stimulus reduction become more clear.
- 1Charlotte a commercial hit for Britain’s Royals
- 2Eurostar’s first direct service to Marseille leaves London St. Pancras station
- 3Air France slams Rafale jet sales to Qatar as unfair
- 4Russia cuts interest rates and senses economic crisis is over
- 5What’s behind Yanis Varoufakis being sidelined and Apple’s financial results
- 1Snowden, Assange and Manning statues unveiled in Berlin | euronews, world news
- 2Chomsky says US is world’s biggest terrorist | euronews, the global conversation
- 3euronews live TV - News | euronews : the latest international news as video on demand
- 4Chomsky – a rebel with a cause | euronews, world news
- 5Anti-ISIL demonstrations turn violent in Ethiopia | euronews, no comment
- 6It’s a girl: Britain’s Duchess of Cambridge gives birth in London | euronews, world news
- 7Chernobyl Children: what makes Ukrainians born in 1986 different? | euronews, world news
- 8The migrants tragedy in the Mediterranean sparks creative satirical response | euronews, world news
- 9Europe is ‘bluffing’ over Greece-Russia relations – analyst | euronews, news
- 10How Nepal earthquake devastated Kathmandu’s UNESCO heritage | euronews, world news
- 11Woman carries can of water on her head along Paris marathon | euronews, world news
- 12Portuguese researchers discover the secret of Mind Control | euronews, futuris
- 13Former IMF chief ‘under investigation for money laundering’ | euronews, world news
- 14ECB chief Mario Draghi unhurt after protest during speech | euronews, world news
- 15International breaking news | euronews online world breaking news in video
- 16International tv news | euronews: European and International tv news bulletin
- 17Andrea Ferrari: the graphene guru | euronews, science
- 18International news | euronews, latest international news
- 19Energy-generating clothes and smart lights join the Internet of Things | euronews, hi-tech
- 20Fighting Boko Haram: Chad aims to ‘destroy’ militant group | euronews, world news
Wires > Business
- 12:40 CET Standard Chartered says HQ under review amid rising UK bank tax
- 12:31 CET Record SUV sales help BMW beat profit forecasts
- 12:20 CET Puma cuts profit forecast as strong dollar takes toll
- 12:08 CET EU to review behaviour of web giants in digital market overhaul
- 11:47 CET Global private debt fund market now at $440 billion – trade body
- 11:43 CET Low interest rates erode Prudential’s new business profit
- 11:41 CET Hugo Boss sees growth picking up after tough first quarter
- 11:40 CET ECB’s T2S settlement system may not launch in June – official