World stocks jarred by emerging markets rout
london — World equities wobbled on Thursday as the emerging markets rout continued to pose a major headache for investors, who are already on red alert over Washington’s trade war with Beijing, dealers said.
Europe’s key stock markets in Frankfurt, London and Paris wavered after heady declines of more than 1.0 per cent the previous day.
“There are tentative signs that this week’s risk sell off, particularly in emerging markets, could be taking a breather,” noted research director Kathleen Brooks at trading firm Capital Index.
But Asian bourses deepened their losses as concerns about contagion from emerging markets (EM) — centred on Argentina, Turkey and South Africa — frayed investor nerves, while sentiment was also dented by the possibility of further US tariffs on China. Meanwhile, India’s rupee hit a new record low of 72 to the dollar.
“Emerging markets turmoil reflects concern about the impact of trade wars on growth, tightening monetary policy and a turn lower in EM growth,” added Kit Juckes, macro strategist at French bank Societe Generale.
Meanwhile the key Indian equity market snapped its six-day losing streak after a largely volatile trading session on Thursday.
According to market observers,
There are tentative signs that this week’s risk sell off, particularly in emerging markets, could be taking a breather Kathleen Brooks, Research director, Capital Index
a late recovery in the Indian rupee which breached the 72 per dollar mark for the first time aided the market to pare its earlier losses.
Besides, value buying and healthy pick-up in healthcare, oil and gas and banking stocks also lifted investors’ sentiments.
At 3.30pm, the Nifty50 on the National Stock Exchange provisionally closed at 11,536.90 points, higher by 59.95 points or 0.52 per cent from its previous close of 11,476.95 points. The benchmark S&P BSE Sensex, which had opened at 38,161.85 points, provisionally closed at 38,242.81 points, higher by 224.50 points or 0.59 per cent from the previous close of 38,018.31 points.