Economics
Emerging-Market Stocks Fall as Fed Concern Outweighs Oil Rebound
- Turkish equities, government bonds slump on political turmoil
- Ruble strengthens amid signs global oil glut may be easing
What Fed 'Policy Mistake' Would Impact Emerging Markets?
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Emerging-market stocks fell for a fifth day as concern that the Federal Reserve may raise U.S. interest rates as soon as next month outweighed rallying oil prices. Turkish bonds slid as a political standoff deepened.
The MSCI Emerging Markets Index posted its longest streak of declines in 2016 after Atlanta Fed chief Dennis Lockhart and San Francisco’s John Williams both signaled this week that the U.S. economy could warrant a rate increase when policy makers meet June 14-15. Futures traders assign only a 10 percent probability for such a move. The dollar strengthened for a third day, reflecting investor concern that higher rates will spur outflows from developing countries.