Troubles in emerging economies dent sentiments in the market

摘要

Sentiment on the financial markets was badly dented in recent days by political unrest in Thailand and Hungary, hedge fund losses and by poor US economic data, but base metal prices generally held up. Commodity markets do not normally mind coups very much. They argue that the new regime will need the revenue from whatever commodity the country sells as much as the ousted government. But the army's move in Thailand coincided with protests against the prime minister's cynicism in Hungary, the collapse of the governing coalition in Poland, and a corruption scandal in the lead-up to a presidential election in Brazil. This was a case of too many emerging markets highlighting political risk all at once.