Emerging Assets Retreat Second Day as Fed Rate Concern Deepens
- Stocks extend drop from year high as traders boost rate bets
- Turkish assets retreat after Fitch cuts outlook on credit
This article is for subscribers only.
Emerging-market currencies and stocks fell for a second day as commodities declined and comments from a Federal Reserve official fueled speculation that there will be a U.S. interest-rate increase this year.
Russia’s ruble and other currencies of oil-exporting nations declined as Brent crude fell below $50 a barrel and Fed Vice Chairman Stanley Fischer indicated that a 2016 rate move is still under consideration. Raw-material producers including Vale SA dragged the Ibovespa lower for a third day in Sao Paulo. Shares in Shanghai retreated the most in three weeks. Turkish assets fell after Fitch Ratings cut the outlook on the country’s credit.