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Emerging markets got inflow of capitals in October

Situation with emerging markets became more positive. In October emerging markets received $13.9 billion of invested capital for the first time since June. Asia received $8.7 billion from this amount.


Latin American developing countries received $4.1 billion. European countries received only $1.6 billion. Meanwhile, it can be observed outflow of capitals from Africa, approximately by $500 million.


Securities markets are also under attention. Bonds market received $7.7 billion and stock market received $6.2 billion. This statistics include purchase of assets by non-US investors.


Although emerging markets got a significant injection of liquidity in previous month, inflow of capitals is not as high as it could be noticed. Current rate of inflow is less than average $22.4 billion, fixed between 2010 and 2014.


As some experts think, inflow of capitals rose due to the US interest rate hike. It’s naturally that players search for more profitable and risky assets.


The US monetary policy tightening lowers along with the reduction of economic activity. Analysts are still confident that rate hike in these conditions is senseless and risky for economic climate.