Emerging Markets Extend Losses as U.S. Rate Hike Seen Imminent
- Developing stocks, currencies retreat for fourth week
- Yellen’s comments add to bets Fed will raise rates in December
Invesco’s Das Says Emerging Markets Have More Room to Run
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Mounting wagers on an interest-rate increase next month by the Federal Reserve deepened emerging-market losses, sending currencies to the lowest level since June and halting a three-day gain in stocks.
The MSCI Emerging Markets Currencies Index and a similar gauge of equities retreated for the fourth week after Fed Chair Janet Yellen told lawmakers Thursday that policy tightening could soon become an appropriate option. Futures traders are betting on the near certainty of a move at the Federal Open Market Committee meeting Dec. 13-14 amid speculation that U.S. President-elect Donald Trump’s spending plans will fuel inflation.