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Panic in emerging markets: Oil hike is perfect storm in the making
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 3 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.
Yaser Faiz Rawashdeh currently heads client trading for the Middle East at Saxo Bank.
Read what Saxo Bank’s Head of Macro Mads Kofoed has to say about emerging markets here:
http://www.tradingfloor.com/posts/panic-emerging-markets-india-crisis-worsen-720909347
01:18 minutes
Tags: brazil, commodities, crude oil, currencies, emerging markets, equities, india, middle east, military action, military intervention, oil, rupee, saxo bank, saxo tv, storm, syria, tradingfloor.com, turkey, video, yaser faiz rawashdeh