Hawkish Fed triggers emerging market outflows in September
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Foreign investors pulled $26.3 billion out of emerging market stocks and bonds in September.
- ✓This first monthly outflow since June happened as a hawkish US Federal Reserve drove up yields and the dollar.
- ✓The report found, "The pressure built in the second half of the month," as investors turned away.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Reuters
- Reading Speed
- 2 Minute(s)
- Market Focus
- India Economy
LONDON, Oct 7 (Reuters) - Foreign investors pulled $26.3 billion out of emerging market stocks and bonds in September, the first monthly outflow since June, as a hawkish US Federal Reserve drove up yields and the dollar, a report by the Institute of International Finance showed.
Non-resident investors pulled $7 billion from emerging market fixed income last month, the first net outflows since March when the escalating Middle East conflict roiled global markets.
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Emerging markets came under pressure in September after the Fed under President Kevin Warsh raised rates for the first time since 2023 and signalled inflation remained a concern. The move sent US Treasury yields sharply higher, lifted the dollar and saw investors pull back from some riskier assets.
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Reuters
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