“Emerging-market equity funds reported the first net withdrawals in eight weeks as the strengthening dollar and weakening commodity prices sapped demand for riskier assets, Citigroup Inc. said.
Funds investing in developing nations reported outflows of $1.6 billion for the week ended May 18, Citigroup analysts led by Markus Rosgen wrote in a report today, citing data compiled by EPFR Global. That compares with net inflows of $265 million in the previous week.
“U.S. dollar strength and commodity weakness amidst concerns with Greek debt restructuring has probably led to investor risk aversion and thus selling in emerging-market equities as a risk asset,” the analysts wrote.”
If you enjoy the content at iBankCoin, please follow us on Twitter
