Capital controls are beginning to weigh heavy on investor sentiment.
Despite currency devaluation and central bank tinkering with over night rates in Turkey and as of this morning South Africa; the trust trying to be instilled is not working as a spike in futures last night have been promptly given the homo hammer.
Perhaps, investors would rather wait to see what America’s central bank will do with tapering, before embarking on the ship of speculation aka ship of fools.
Barclays estimates the Euro Zone will have the most to loose if emerging market volatility continues. Read up here
As far as capital controls getting worse, well the writing is on the wall with actions from prominent banks along with negative commentary from the IMF, Bundesbank, and the Fed.Twitter