Emerging markets have performed poorly recently, and that trend continued on Monday. Bloomberg reports:
The MSCI Emerging Markets Index slid 1.4 percent to 944.88. The Jakarta Composite Index dropped by the most since October 2011, while Thailand’s SET Index retreated to a one-month low. India’s S&P BSE Sensex extended a drop from its July 23 high to almost 10 percent and the rupee led losses in 23 of 24 developing-nation currencies tracked by Bloomberg. Brazil’s swap rates climbed as the real touched a level weaker than 2.4 per dollar for the first time in four years.
Indonesia’s current-account shortfall widened to $9.8 billion last quarter, the largest in data compiled by Bloomberg going back to 1989. Thailand cut its 2013 growth forecast as the country entered recession for the first time since the global financial crisis. India’s rupee plunged on speculation a strengthening U.S. economy may prompt the Federal Reserve to pare its $85 billion monthly bond-buying program.
Developed markets were not spared from Monday's declines. The STOXX Europe 600 fell 0.5 percent and the S&P 500 fell 0.6 percent as US 10-year Treasury yields rose six basis points to 2.88 percent, the highest level since 2011.
Chinese stocks managed to rise on Monday though. The Shanghai Composite Index rose 0.8 percent, its first gain in four days.
Also in China, over the weekend, the National Bureau of Statistics reported that home prices rose in July in 62 of 70 cities it monitors, slightly down from 63 in June.
No comments:
Post a Comment