Emerging Markets Post First Foreign Outflow Since June as Fed Turns Hawkish
Foreign investors withdrew $26.3 billion from emerging-market stocks and bonds in September, ending a three-month run of inflows and marking the first monthly outflow since June, according to the Institute of International Finance. The reversal was driven by a more hawkish Federal Reserve, which lifted U.S. Treasury yields and the dollar, weakening the relative appeal of emerging-market assets.
