– September 2018
Currency and debt concerns among emerging markets drove global volatility upward. Fiscal turmoil with Turkey and Argentina spread to other emerging economies as the fear of contagion rose.
A stronger U.S. dollar in addition to tariff tensions added to the uncertainty as emerging market currencies fell versus the dollar.
Russia, considered an emerging market, was also affected by sanctions imposed by the U.S. The sanctions are considered political yet may develop into more economic sanctions should relations falter. Russia’s currency, the ruble, has fallen over 16% this year versus the U.S. dollar.
Trade and tariff disputes continued to headline uncertainty throughout the global markets. Canada, Mexico and China were in the forefront of negotiations as the administration sought tariff relief for U.S. companies selling products overseas.
Sources: Dept. of Commerce, FRED
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