INSUBCONTINENT EXCLUSIVE:
By Aline OyamadaThe flight from riskier assets in emerging markets threw up a procession of grim reminders, from the financial crash of 2008
to the taper tantrum of 2013.
The spread of the coronavirus outside of China threatened to stall global supply lines and slash economic
growth, sending markets into a tailspin from India to Brazil.
The week ended as badly as it started, with Mexico reporting the second case
of coronavirus in Latin America and Nigeria announcing the first infection in sub-Saharan Africa
The number of cases also soared in South Korea and Italy, with the rest of the world overtaking China for new infections for the first time
Tenengauzer, head of markets strategy at Bank of New York Mellon Corp
benchmark MSCI stock index fell by the most since September 2011Bond spreads widened by the biggest amount in two yearsEvery single Latin
American currency tumbled, even as the Russian ruble and the South African rand led global lossesDeveloping-nation companies lost more than
enough, Russian bombers killed 33 Turkish troops in Syria, stoking regional tensions and sending the lira tumbling.
Here are some of the
United States sanctions scare in 2018 and the collapse of crude prices at the beginning of 2016 as political tensions with Turkey added to
the impact of the coronavirus.
The ruble was on track for the biggest weekly drop of any currency globally, its worst decline since a round
the second worst performer in emerging markets over the week, dropping 4.3 per cent and extending its worst start to the year since 2008
last time Turkish equities had a jolt this violent was in the midst of the so-called taper tantrum, when the prospect of the higher US
borrowing costs and a smaller Federal Reserve balance sheet sent emerging markets plunging.
The Borsa Istanbul 100 Index slumped 10 per cent
at the open Friday, its biggest intraday drop in almost seven years as tensions between Ankara and Moscow soared after an attack on Thursday
killed at least 33 Turkish troops in Syria
The last time the Sensex fell this much was in July 2009 when a farm crisis was worsened by poor monsoon predictions.
The gauge posted
similar losses several times during the 2008 financial crisis.
PolandEastern European stock markets were the worst performers in the
economy.
Lebanon and ArgentinaNotes from Lebanon and Argentina posted the first- and third-largest declines as investors dumped bonds amid
talks to restructure their debt
Their average spreads widened 929 and 140 basis points, respectively, according to JPMorgan indexes.
EcuadorEcuador debt was the second
worst performing, with the average spread of its sovereign notes jumping 248 basis points
Minister said they are looking for a debt re-profiling -- a statement that was later denied by the ministry
as Brazil and Mexico reported their first cases of coronavirus, fueling concern over the impact to economies that are already struggling to
expand.
The Brazilian real fell to a record low despite two interventions from the central bank, which sold $1.5 billion in foreign-exchange
The Ibovespa index dipped below the 100,000 key psychological level and entered oversold territory.
The Colombian peso also weakened to a
record as it fell the most since November 2015, dragged lower by tumbling oil prices
The Chilean peso weakened despite central bank intervention and the Mexican currency reached the lowest since October.
