Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Emerging market selloff deepens after Trump’s win

Stock MarketsNov 14, 2016 11:35
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Emerging markets post U.S. presidential election selloff deepens - A selloff in emerging markets currencies, stocks and bonds deepened on Monday amid ongoing uncertainty over how developing economies will fare under a Donald Trump administration in the White House.

Emerging markets have been hit by fears over the prospect of a more protectionist U.S. trade stance, which would be both inflationary for the U.S. and negative for trade-exposed economies.

During his campaign Trump said he would pull America out of the Trans Pacific Partnership trade deal, build a wall on the border with Mexico and branded China a currency manipulator.

Investors expect that Trump's campaign pledges to increase fiscal spending, cut taxes and loosen financial regulation will prompt the Federal Reserve to hike interest rates as economic growth and inflation pick up.

Higher interest rates could lure more investors back to the U.S. and spark an outflow of capital from emerging markets.

A rally in the dollar and a selloff in global bonds on the back of a surge in inflation expectations have also pressured emerging markets.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.77% at 99.76, the highest level since January 29.

Emerging-market currencies were particularly hard hit, with the Mexican peso not far from record lows against the greenback, with USD/MXN at 21.01.

The Turkish lira fell to record lows on Monday, with USD/TRY hitting 3.29, while the Russian ruble hit lows of 66.39, the weakest level since early August.

Meanwhile, China’s yuan continued to slide, hitting its lowest level in seven years.

The yuan has fallen around 0.7% against the dollar since last Wednesday, when it became apparent that Trump had won the U.S. presidential election.

Overnight in Asia, emerging market stocks were sharply lower, with the Philippines PSEi Composite down 1.5%, and Indonesia's JSX Index dropping 2.2%.

The dollar rose more than 1.5% against the Malaysian ringgit while the yield on 10-year government bonds in Malaysia and Indonesia climbed.

Emerging market selloff deepens after Trump’s win

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email