Stock markets from Japan to US, suffered big losses today and currencies of many emerging markets witnessed serious decline after capital outflows.
Stock markets in Europe and US lost nearly 3% points and Asian markets also experienced similar trend.
World Markets fell by 3.5% on an average, Indian stocks fell by 1.7%; rupee near to 68
India also was deeply affected by the uncertainty in the global market as both stock markets and the rupee falling during the day.
The rupee lost 30 paise and closed just short of 68 at 67.95 against Dollar. Rupee was plunged to its 28 month low during intraday. But the rupee was a comparatively better performer among the EME currencies. Russia’s Rouble has registered its lowest value among the emerging market currencies. The Mexican Peso has also registered steep decline.
Among markets also the Sensex and Nifty lost 1.7%, but it was moderate compared to the steep fall registered by markets of advanced countries. The MSCI All-Country World Index fell 3.4 percent at 12:49 p.m. in New York. It shows that the Indian market was less affected on a day of turbulence. Europe’s FTSE 100 hs lost 3.4% -almost double loss compared to the Indian markets.
Germany’s stock indices also lost around 3% of their value. In the US, major indices are also closing at nearly 3% loss. In Asia, Japan’s Nikkie index lost 3.71%, whereas the Hong Kong’s SCI lost 3.8%. Mainland Chinese market continued to make losses on Wednesday also.
Concerns over a more than expected slowdown of the Chinese economy and its effect on commodity prices have produced the day’s uncertainty. US Fed’s tightening interest rate policy is adding to the chaos.