Prospect of War in Syria Rattles Emerging Markets

hxdbzxy via Shutterstock

AA Font size + Print

With Wall Street on edge over the looming military strike against Syria, investors in emerging markets like Turkey and India are rushing for gold and U.S. currencies. By Matt Phillips

Who’s scaring the markets more: Ben or Bashar?

The prospect of coordinated military strikes against Syria by the US, UK and France—after Syria’s apparent use of chemical weapons against its own citizens—is adding momentum to the rush out of emerging-market nations, as investors scramble to the traditional safe-haven assets: gold, US Treasurys and the US dollar. Aside from general skittishness, the added concern is partially related to the prospect of a Syria-related spike in oil prices, which raises risks of inflation in emerging markets.

Officials in fast-growing emerging markets have blamed Ben Bernanke’s Federal Reserve and hints of a taper in monetary easing for the recent sharp selloff in their markets. In India, the key Sensex stock index is down 11% over the last three months and the rupee is tumbling to record lows against the US dollar almost every day. Stock markets in Thailand, Philippines and Indonesia are all down about 20% over the last three months.

Read more at Quartz.

(Image by hzdbzxy via Shutterstock)

Close [ x ] More from DefenseOne
 
 

Thank you for subscribing to newsletters from DefenseOne.com.
We think these reports might interest you:

  • Software-Defined Networking

    So many demands are being placed on federal information technology networks, which must handle vast amounts of data, accommodate voice and video, and cope with a multitude of highly connected devices while keeping government information secure from cyber threats. This issue brief discusses the state of SDN in the federal government and the path forward.

    Download
  • Military Readiness: Ensuring Readiness with Analytic Insight

    To determine military readiness, decision makers in defense organizations must develop an understanding of complex inter-relationships among readiness variables. For example, how will an anticipated change in a readiness input really impact readiness at the unit level and, equally important, how will it impact readiness outside of the unit? Learn how to form a more sophisticated and accurate understanding of readiness and make decisions in a timely and cost-effective manner.

    Download
  • Cyber Risk Report: Cybercrime Trends from 2016

    In our first half 2016 cyber trends report, SurfWatch Labs threat intelligence analysts noted one key theme – the interconnected nature of cybercrime – and the second half of the year saw organizations continuing to struggle with that reality. The number of potential cyber threats, the pool of already compromised information, and the ease of finding increasingly sophisticated cybercriminal tools continued to snowball throughout the year.

    Download
  • A New Security Architecture for Federal Networks

    Federal government networks are under constant attack, and the number of those attacks is increasing. This issue brief discusses today's threats and a new model for the future.

    Download
  • Information Operations: Retaking the High Ground

    Today's threats are fluent in rapidly evolving areas of the Internet, especially social media. Learn how military organizations can secure an advantage in this developing arena.

    Download

When you download a report, your information may be shared with the underwriters of that document.