There has been a lot of talk over the past few months about the Fed Taper and the impact on emerging markets and flow of funds out of these markets.
While there is a lot of truth in the axiom that says that the taper has caused the exodus, the other reality is that the data for and from Emerging Markets in general – and the BRICs in particular – has been poor for months.
But not any longer.
According to the latest update of the Citibank Economic Surprise index, the economic data flow from the BRICs has moved into positive territory for the first time in six months, while for emerging markets, it is the first time there has been a positive print above zero since January 11 this year.
The chart below tells the story.