Saturday, April 20, 2013

5 Reasons Why Emerging Markets Are Selling Off

From The reasons behind emerging markets correction:

1. The spectacular decline in shares of Apple has put downward pressure on some of its Asian suppliers and related technology firms.

2. Weaker than expected growth in China is contributing to the sell-off (see Bloomberg story from earlier this week).

3. The recent violent commodity sell-off especially in metals and energy is pressuring commodity producers such as Russia. Russia's export sector is a one-trick pony, except for some arms sales and a sprinkle of IT services. That's why with oil sharply lower, the Russian stock market is down 13% year-to-date. Other commodity exporters, from Brazil to South Africa, got hit as well….

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