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In today’s edition of Moneycontrol Pro Panorama: Zee’s screen test, Chart of the Day, the road to taper and lift-off, Evergrande and bad loans, and more
If US real rates trend higher ahead of potential tapering, then EM FX could be affected, hurting inflows to emerging markets
Nick Parsons, National Australia Bank is of view that taper of around USD 10 billion per month is likely to continue for next 6 months.
Apart from China woes, investors also bothered about further QE tapering because the inflow of foreign money may get impacted.
The metal is headed for its first annual decline in 13 years as investors, buoyed by a recovering global economy, channel more money into riskier assets such as equities by pulling funds from safe-haven gold.
The Indonesian rupiah hit a near five-year low, succumbing to year-end corporate demand for the dollar. The rupiah fell to as low as 12,040 versus the dollar, its lowest level since March 2009, according to Thomson Reuters data.
The Nikkei ended down 1.1 percent to 15,341.82 after slipping to a low of 15,255.36, the weakest since last Friday.
Brokerage house Bank of India Merrill expects the Sensex to correct to around 19,000-19,500 in early 2014, weighed down by Fed taper, PSU divestment and rate hikes.
The auction of USD 21 billion in reopened 10-year Treasury notes at 1 p.m. ET Wednesday could provide an indication of where market expectations line up on the Fed's timing.
Moves were modest ahead of central bank meetings in the European Union and UK, and the latest read on US economic growth.
Furthermore, George Hoguet of State Street Global Advisors says he is constructive on US equities in 2014 as he expects US companies‘ earnings to grow at 8 percent.
