Add a familiar item to the list of worries for investors: turmoil in the emerging markets. Turkey's central bank lifted interest rates sharply Wednesday, an emergency measure aimed at stopping the riptide of capital pouring out of the country in recent days. The central bank announced that it would raise a key borrowing rate by 3 percentage points, to 16.5 percent, after Turkey's lira dropped by as much as 5 percent during the day. In currency markets, moves of even 1 percent are viewed as exceptionally large. [ Read how the lira's dive could endanger President Recep Tayyip Erdogan's bid for re-election in June. ] Argentina made a similar move this month after investors abruptly lost faith in the government's reform efforts. The Argentine peso plunged more than 20 percent, before the central bank lifted interest rates to 40 percent. The government is now negotiating a bailout package with the International Monetary Fund. The question on the minds of investors: Is this the start of a bust that could shake the world economy, similar to those that battered Russia, South Korea, Mexico and most of Southeast Asia in recent decades? Or is this merely a market hiccup, akin to the… Read full this story
- EMERGING MARKETS-Latam stocks rise on U.S.-China trade hopes; Brazil index at record high
- What can emerging markets expect next?
- How equity investors should play the falling GDP scenario
- Don't worry about market, continue with your equity MF investments, say CIOs
- Mark Mobius expects 5-10% correction in select sectors; bets on NBFCs
- Bet on YES Bank for 20-25% upside in a month: Sudip Bandyopadhyay
- 'An Australian nightmare': Investor who spent $840,000 on a 'dream home' inside Sydney's cracked Opal Tower faces financial ruin
- People in Delhi have too much preference for rating agencies, they are not that important: Chris Wood, Jefferies
- Who cares who forms government? Ashwini Agarwal is betting on these 3 sectors
- Hope Modi govt has learnt its lessons and focuses on growth if re-elected: Krishna Memani
Emerging Markets Are Worrying Investors, Again have 326 words, post on www.nytimes.com at May 23, 2018. This is cached page on wBlogs. If you want remove this page, please contact us.