Friday 1 August 2014

Emerging Stocks Rout Burns Investors Piling in at Highs - Bloomberg

Emerging Stocks Rout Burns Investors Piling in at Highs - Bloomberg:



"The biggest selloff in emerging-market stocks since March is handing losses to investors who piled in as the benchmark index rose to an 18-month high. 




The two-largest U.S. exchange-traded funds that invest in developing nations recorded net inflows of $2.04 billion in the week ended July 30, the biggest purchases in about four months, while China-focused ETFs attracted the most money among 24 countries, data compiled by Bloomberg show. Asia ETFs and mutual funds lured $2.3 billion, the most since 2007, according to EPFR Global data compiled by Citigroup Inc.



The MSCI Emerging Markets Index sank 1.2 percent yesterday and extended its retreat today as lower-than-estimated earnings at Samsung Electronics Co. (005930), unrest between Russia and Ukraine and a default by Argentina spurred speculation that the rally has gone too far. The gauge had climbed as much as 7.8 percent this year as China’s economy accelerated and concern eased that Federal Reserve stimulus cut will spur capital outflows."



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