Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

Free Trading Guides
Subscribe
Please try again
Select

Live Webinar Events

0

Economic Calendar Events

0

Notify me about

Live Webinar Events
Economic Calendar Events

H

High

M

Medium

L

Low
More View More
China to BRICS, Emerging Markets Pose Global Risk

China to BRICS, Emerging Markets Pose Global Risk

Talking Points:

• The emerging markets represent a serious risk to global financial stability and economic activity

• China is a focal point given its size, but the connections to BRICS and smaller EMs make them just as potent

• GDP contribution, panicked capital repatriation, cross-boarder defaults and other triggers exist

What are the Traits of Successful Traders? See what our studies have found to be the most common pitfalls of retail FX traders.

China's troubles can easily turn into the world's problems. However, this isn't the only emerging market economy that poses a risk to the global financial system. The BRICS are among the largest economies in the world. Moreover, their collective growth through and after the Great Financial Crisis represent an out-sized contribution to the world's recovery. An interconnected global financial system further leverages the risk to even smaller EM players. Speculators' unchecked exuberance over the past years has raised the general risk profile of portfolios to liquidity problems. Cross-boarder loans further exacerbates headline issues like fading global consumer demand, tumbling local currencies and plunging commodity prices (traditionally considered a boon for the market). We discuss the tiers of EM groups and the type of risks they pose to the world in today's Strategy Video.

Sign up for John’s email distribution list, here.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES