This story that broke on Bloomberg yesterday is what I had hoped not to hear for at least another couple of months. The word "contagion" is generally not used lightly - read the story here:
Today everywhere is down except for American Markets - Source Bloomberg SAST 12:00 on
31 Jan 2014
Add to that that Europe markets seem a bit jittery.
And then the news that Emerging Markets lost $ 10 billion in the past week - which would explain why so many emerging currencies around the world tanked so dramatically in the last week or 2. Also see which Emerging Economies are appearing most at risk ... now add to that the current situation in these countries:
- Brazil - construction strikes and anger over the amount of money spent on World Cup 2014
- South Africa - strikes in mining sector , service delivery protests with a national election to be held within a few months
- Ukraine - serious political unrest, Prime minister resigning - see some of the tell tale photos here
- India, South Africa and Turkey increasing interest rates this week
- Thai stocks are reaching their most volatile levels since 2006 , and Thai political protests
- Problems in China
Ukraine - Photo courtesy of BBC News
Seems like we might be in for a bit of a bumpy ride ?