Money Is Flooding Out Of Emerging Markets Again

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From the ANZ comes their brilliant weekly summary of portfolio flows around the world.

Of interest on the day the Chinese Yuan has its biggest fall since 2005 is what’s happening in emerging markets and ANZ says, based on EPFR funds flow data, “portfolio outflows from Emerging Asia rebounded to $US2,094m in the week ending 26 February, after two weeks of slower outflows.”

It looks like it is money out of equities with outflows doubling this week to $US1,771m from $US809m last week. Chinese outflows have picked up once again as well.

Understandably the week that the S&P 500 made a new intraday high and the Stoxx 600 index in Europe a 6 year high the data shows that “US stocks ($US7.5bn) and European equities ($US3.1bn) remained the dominant recipients of funds” over the past week.

These flows might have fallen off the front page of the newswires but as the G20 agreed last week the possibility of emerging market instability remains high.

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