The story in equity markets across the world was pretty much the same as it was in India on Monday. Carnage continued in emerging markets across the world for the 10th day, reports CNBC-TV18.
It is the longest losing streak in almost eight years, as investors fled riskier assets because of sliding commodity prices and rising interest rates. The MSCI emerging markets index, which tracks shares in 26 developing nations globally, slumped 4.6 per cent. The MSCI emerging market index has also tumbled 15 per cent from a record close set on May 8.
The Russian market halted trading for an hour as it plunged 10 per cent. Meanwhile Latin American stocks had their biggest decline since the terrorist attacks in the US on September 11, 2001. In Latin America, Brazil's Bovespa dropped 3.3 per cent and the Mexican Bolsa slipped 4 per cent. Turkey led declines in the MSCI emerging Europe, Middle East and Africa Index.
Nervousness among commodity investors persisted on Monday, after last week's sharp sell-off, but both base and precious metals staged a limited recovery.
Data showing large net short positions in Copper caused the metal to fall by its daily trading limit in Shanghai, and prompted early weakness in London. But soon, bargain hunters moved in, and it recovered from a low of $7250 to $7572 a tonne.
Aluminium ended up about 1.3 per cent at $2726 a tonne. Nickel rose 2 per cent to $20,725 a tonne, while Zinc rose 2 per cent to end at $3,280 a tonne. Gold futures started off on a shaky note, but soon staged a slight recovery.
Prices hit a low of $636.20 an ounce, but renewed dollar weakness took hold triggered a recovery. Silver rebounded from a near one-month low of 11.90 an ounce to about 12.60 an ounce.
Russ Koesterich of Barclays Global Investors says that most metal stocks should be stayed away from, if the interest rates keep going higher.
For more on markets & business, log on to www.moneycontrol.com