"Ben Bernanke took the world by surprise on Wednesday by saying the Fed’s $85bn a month bond-buying programme would continue unchecked.
Investors around the globe had expected at least some reduction in the Fed’s quantitative easing programme, which has done so much to buoy up the prices of emerging market assets since the financial crisis of 2008-09. US stocks and bonds surged on the news and EM currencies rose strongly against the dollar.
The Turkish lira gained 1.77 per cent; the Brazilian real, 1.69 per cent; the Polish zloty 1.41 per cent and the South African rand 1.18 per cent, all within moments of the announcement.
And for a simple illustration, here’s what happened to the Bovespa index in São Paulo:
'via Blog this'
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