Emerging Markets are going through tighten-tantrum

Shoet comment

The market consensus has been 4 times in Fed rising during this year, and this doesn't chage.

The problem could be Fed's attitude.

Mr. Powell's recent comments have been estimated as the institution does not care about effect of rises in the rate to the other countries.

Ms. Yellen, Fed president before Mr. Powell, appeared to worry for global economic situation.

For example, she sent a message about delaying their tightening process with the market's concern over Chinese hardlanding.

Even though Statements of Fed are giving messages that there wouldn't be fast tightening, Mr. Powell's comments which got tanggled with America First policy from US givernment, are enough to tie investors in knot.

According to EPFR, markets information provider, more than 22 billion dollar had  leaked from funds which are investing on Emerging Markets during a last week.

And the weak countries are still suffering from short positions in their currency market.

The participants have been being back to their selling again in Turkish lira and Argentine peso.

With this, stock markets of overall emerging markets are suggering too.

Korea -2.62%, Russia -2.66%, Brazil -1.89%, China -0.91% during a last week.

I think the participants are showing over-reaction about the problem like they did before with trade war between US and the rest of the world.

There are still enough liquidities in global markets from QE of Fed, ECB and BoJ.

I beileve there wouldn't be collapse (at least -5% during a week.) in emering markets except the weakest countries like Turkey, Argentina and South-Africa during left 2018.