Currencies, stocks sell-off as investors brace for tightening

By Susan Mathew and Ankika Biswas

Sept 1 (Reuters) - Emerging market currencies slumped towards two-year lows on Thursday, as recession worries heightened with the European Central Bank and the U.S. Federal Reserve expected to aggressively tighten monetary policy this month.

Weak PMIs out of Asia and Europe reinforced worries about an economic slowdown, while major central banks' continued focus on inflation control further deepened worries that they might stay tolerant of a some amount of weakness in growth.

The ECB and the Fed are seen hiking by 75 basis points this month, in what would be the Fed's third increase of that size this year.

The Chinese yuan CNY= stayed close to two-year lows, while a record trade deficit in South Korea saw the won KRW= slump 0.9% to its lowest over a decade. South Africa's rand ZAR= hit six-week lows, while Turkey's lira fell up to 0.7% before recovering.

"It's a challenging environment for emerging markets," said Jakob Christensen, chief analyst, head of EM research at Danske Bank.

"The PMIs this morning enforcing this signal that the global manufacturing sector is going down, and the Federal Reserve really reinforcing its inflation fighting narrative at the Jackson Hole last Friday, which has really spooked equity markets and global risk sentiment."

Stocks sold-off too, with the MSCI's index of EM shares .MSCIEF slipping 1.7% to its lowest in over a month. Asian shares .MIAPJ00000PUS were set for their worst session in nearly eight weeks with South Korea's KOPSI .KS11 dropping 2.3%.

South Africa .JTOPI and Turkish shares .XU100 lost more than 1% while Polish shares .WIG gave up almost 2%.

In Turkey, where inflation is already at 80%, the government raised electricity and gas prices. The hikes are expected to push Turkey's inflation up by 0.8 percentage points, according to a Reuters calculation.

With the government demanding a focus on economic growth, Christensen said the price hike may see the central bank keeping the key interest rate unchanged at the next meeting, after having cut it by 100 basis points to 13% this month.


Sri Lanka on Thursday reached a preliminary agreement with the International Monetary Fund (IMF) for a loan of about $2.9 billion, while Zambia won IMF approval for a $1.3 billion, 38-month loan programme.

Sri Lankan shares .CSE jumped 2%, and the July 2026 dollar bond US85227SAR76=TE ticked up, as did Zambia's July 2027 issue 988895AF5= .

"A challenging issue is of course that debt sustainability is questioned and in many of these places, China has provided a good chunk of loans that is complicating the possible debt restructuring," Christensen said.

For GRAPHIC on emerging market FX performance in 2022, see Link For GRAPHIC on MSCI emerging index performance in 2022, see Link

For TOP NEWS across emerging markets

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see
Reporting by Susan Mathew in Bengaluru; editing by Barbara Lewis

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。


本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。