Money continues to spill out of the emerging markets.
According to EPFR Global data, $US3.05 billion came out of dedicated emerging market funds during the week ending Feb. 12.
The marks the 16th straight week of outflows with cumulative outflows of $US36.60 billion.
“Another record set after last week when EM funds broke 2002 record of 14 weeks of straight outflows,” observed Morgan Stanley’s Jonathan Garner.
The recovery in the U.S. stock market seems to belie what continues to be a troubling situation in these developing markets. Many of these countries rely heavily on financing that comes from abroad.
On the plus side, we are seeing some deceleration.
“This week’s outflow of US3.05bn is lower compared to the average US$6.30bn over the last two weeks,” said Garner.
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