Emerging markets are a perfect storm in the making says Saxo BankPosted on 02 September 2013 with no comments from readers
The prospect of a military strike by Western powers against Syria is the last thing emerging markets need; currencies and equities have fallen in many countries in recent weeks and as Saxo Bank’s Yaser Faiz Rawashdeh explains, the recent oil hike could be what triggers ‘the perfect storm.’
Crude oil prices jumped nearly three per cent to an 18-month high. Markets are already on edge about an expected reduction in stimulus by the US Federal Reserve. As Yaser explains, his clients usually factor in turmoil in the Middle East, but this situation is different and they are now starting to prepare themselves for what impact a military intervention would have.
Emerging markets have had a tough few weeks; India, Brazil and Turkey are all in a bear market and the Indian rupee has lost 3.7 per cent to hit a new record low of 68.75 to the dollar.