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  • Emerging market funds lose $10 billion in past week

    (Reuters) - Investors yanked $10 billion from emerging stock and bond funds during a turbulent past week, with equities seeing their biggest outflow in 2-1/2 years, banks said on Friday citing data from Boston-based fund tracker EPFR Global.

    EPFR had released data to clients late on Thursday showing emerging equity funds lost $6.3 billion in the week to January 29, the biggest weekly outflow since August 2011.

    This week has seen some major falls in emerging currencies' exchange rates, with central banks forced into rate rises or market interventions to limit the swings. Those currency losses and rate rises have put pressure on bond and stock holdings, forcing exits.


  • #2
    Emerging-market rout seen enduring on low real rates

    Inflation-adjusted interest rates are still too low in developing nations for Citigroup Inc. and Goldman Sachs Group Inc. to foresee an end to the worst emerging-market currency selloff in five years.

    One-year borrowing costs in Turkey are 3.6 percent, less than half of the average in the three years before the 2008 global financial crisis, even after the central bank doubled its benchmark rate last week, according to data compiled by Bloomberg. The real yield for Mexico is almost zero, while South Africa’s is 1.4 percent, compared with an average of 2 percent over the past decade.



    • #3
      Global shares plunge as U.S. slowdown adds to emerging markets woes

      (Reuters) - World shares slumped to a near four-month low on Tuesday as signs the U.S. economy was stuttering compounded already frayed nerves following a sharp sell-off in emergingmarkets.

      A weaker-than-expected report on U.S. factory activity hurt global equity markets and the dollar on Monday and left investors scurrying for traditional safe-haven assets such the U.S. and German government bonds and the Japanese yen.

      It had been another torrid Asian session as traders returning from Lunar New Year holidays got up to pace with the sell-off and European markets looked in no mood to deviate from the downward course.