Sentences with phrase «capital out of emerging markets»

Those policies will cause inflation and U.S. interest rates to rise, which in turn will pull capital out of emerging markets.»

Not exact matches

Emerging markets also account for over 50 % of world GDP, and have been responsible for the lion's share of global growth ever since the 2008 financial crisis, but capital has flooded out of them as the Federal Reserve has tightened its monetary policy and the limits of China's economic model have become apparent.

«While one month's data do not make a trend, we think this could be the first sign that China's recovery is starting to run out of steam following the withdrawal of policy support,» Neil Shearing, chief emerging markets economist at Capital Economics, warned.

As the Fed tightens under a hawkish Janet Yellen, a big chunk of the $ 4 trillion of foreign capital that has flowed into emerging markets since 2009 will come out again.

It now appears likely that more capital will flow out of emerging markets and less will flow in than has been the case in recent years.

That adds to a downside bias since 2013's «taper tantrum» that sparked capital flows out of emerging markets and into the U.S. as investors began to grasp that the post-financial crisis era of ultra-low U.S. interest rates was drawing to a close.