Red line - US Markets.Blue line - Emerging Markets Index
The credit crisis has hit the Emerging world more than the Developed world. All emerging markets have lost 40-60% of their market values this year. The BRIC ( Brazil, Russia, India, China) nations have taken the brunt head on. Brazil and Russian Markets are commodity based markets. The fall in commodity prices has crashed the stocks in these markets. With Russian RTS index falling 70% this year. Circuit Down is a regular event in Russian Markets now a days. Russia has been down graded by rating agency S&P.
India and china on the other side had their share of losses. These markets were darling's of FII in the past years. Those Troubled banks and hedge funds are dumping the stocks in order to survive themselves. China's growth has slipped to 9% this quarter slowest in 5 years. India's Growth expectations has been scaled down to 7% this year.
One respite in the recent times is the fall in Crude oil prices. India will breathe easy as high oil prices had hurt it the most. Oil is Down 40% this year.
It will be some time before we know if these markets can emerge stronger from the mess or If they will be hit hard.
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