Periphery hit by OECD performance

Four new factors have had a significant impact on emerging markets over the past three months. The combination of slowing global growth, events in Argentina and Turkey and instability in the Pacific region have weakened the short-term outlook by prolonging economic uncertainty, delaying future growth and raising risk premiums. The overriding influence has been the slowdown in global growth and, in particular, the slowdown that we are now witnessing in the US. The knock-on effect for emerging markets has been very pronounced, as the historic correlation between growth of the OECD nations an...