Sober Look | Apr 18, 2013 01:45AM ET
A confluence of recent events has been pressuring emerging countries' equity markets. Over the past couple of years, emerging and developed markets have been moving in lockstep, but the two have diverged recently.
Bloomberg: Emerging-market stocks dropped to the lowest level in almost five months as Apple Inc.'s Asian suppliers retreated on speculation sales are slowing, and concern grew that the global economy is faltering.
LG Display Co. slid the most in four months, after audio-chipmaker Cirrus Logic Inc. reported an inventory glut that suggests slowing iPhone sales. Jiangxi Copper Co. sank 2.5 percent in Hong Kong, while Russia’s Micex Index reversed earlier gains, closing at the lowest level since June 25.
Brazil’s Bovespa index rebounded from a nine-month low, as Gol Linhas Aereas Inteligentes SA jumped 11 percent. The MSCI Emerging Markets Index fell 0.4 percent to 997.33 in New York, the lowest level since Nov. 28. Stocks joined losses in the U.S. equity market as data on leading economic indicators and Philadelphia-area manufacturing trailed estimates. Earlier in the week, the International Monetary Fund trimmed its global growth forecast.
“It’s global, very much like a cold that seems to be going around,” Lawrence Creatura, a Rochester, New York-based fund manager at Federated Investors Inc., which oversees about $380 billion, said by phone. “Earlier in the year, the macro data was on a more reliably upward trajectory. Now there appears to be a moderation going on.”
There is "moderation going on" indeed.
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