Jan. 31, 2014: HAPPY LUNAR NEW YEAR (Year of the Horse – Another wild bronco ride for the stock markets, unless . . . )
The mainstream media in the Philippines is working overtime to distract people’s attention from the more serious and devastating crisis. Filipino oligarchs, politicians and media are trying to divert the people’s attention from the global currency crisis i.e. strengthening US dollar against emerging market currencies around the globe.
It’s the “Perfect Storm” Syndrome once again from six-months ago that hit the Philippines on Aug. 5, 2013 when Phil. Airlines started cancelling non-dollar revenue domestic flights.
The 2013 Perfect Storm started in the U.S. on June 19, 2013 see: https://www.nedmacario.us/the-perfect-storm-has-arrived-june-19-2013/
Then moved on to Asia on Aug. 19 with the Indonesian stock market crash. It ended on Aug. 23, 2013 with the South African stock market correction but not after currency sell off including India, Brazil and Mexico.
Perfect Storm Over Asia All the Way to South Africa – Aug. 19 to 23, 2013
This year it started in Argentina on Jan. 23, 2014 when the Argentine Central Bank ran out of US dollar reserves.
News: Do cry for me Argentina? Peso plunges
By Jesse Solomon @JesseSolomonCNN January 24, 2014: 12:46 PM ET
http://money.cnn.com/2014/01/24/investing/argentina-peso-slide/
Speaking to CNN’s Richard Quest from the World Economic Forum in Davos this week, IMF chief Christine Lagarde said her organization would like to learn more about Argentina’s finances.
“We would like to go under the skin of any economy in the IMF,” she said, adding that a call from the Argentinean government “would be more than welcome.”
But there’s no question that the situation in Argentina is worrisome.
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S&P 500 Slides Most Since June on Emerging Market Turmoil
By Nick Taborek Jan 24, 2014 1:54 PM PT 175 Comments Email Print
http://www.bloomberg.com/news/2014-01-24/u-s-stock-futures-decline-on-emerging-market-currencies.html
U.S. stocks sank the most since June, capping the worst week for benchmark indexes since 2012, as a selloff in developing-nation currencies spurred concern global markets will become more volatile.
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Argentina’s Currency Falls Sharply Against the Dollar, Stirring Inflation Fears
By SIMON ROMERO JAN. 23, 2014
RIO DE JANEIRO — Argentina’s currency, the peso, plunged more than 8 percent on Thursday against the dollar after the country’s central bank tried to stem a decline in international reserves. The sharp decline, with the peso dropping the most since Argentina’s 2002 financial crisis, raises concerns that inflation could accelerate even further.
Since the start of the year, the Argentine peso has weakened 18 percent, ranking it among the world’s worst-performing currencies against the dollar. President Cristina Fernández de Kirchner’s cabinet chief, Jorge Capitanich, insisted on Thursday that the plunge was not a devaluation but the result of the forces of supply and demand.
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Here’s a good article on the 2014 currency crisis in the emerging markets
A global tour of the emerging-markets currency crunch
By Tim Fernholz @timfernholz January 26, 2014
http://qz.com/170776/a-global-tour-of-the-emerging-markets-currency-crunch/
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And the price the U.S. stock market paid for the 2014 Perfect Storm & Tapering
Market Close Friday, January 31, 2014
Dow Jones 15,698.85 -149.76 (-0.94%)
S&P 500 1,782.59 -11.60 (-0.65%)
Nasdaq 4,103.88 -19.25 (-0.47%)
Gold 1,265.10 +1.14%
Crude Oil 97.41 -0.01%
EUR/USD 1.3489 -0.02%
10-Yr Bond 2.6680 -0.93%
GBP/USD 1.6439 +0.0030%
USD/JPY 102.0950 +0.11%
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Market Close Wed. Jan. 29, 2014
Dow Jones 15,738.79 -189.77 (-1.19%)
S&P 500 1,774.20 -18.30 (-1.02%)
Nasdaq 4,051.43 -46.53 (-1.14%)
Gold 1,265.10 +1.14%
Crude Oil 97.41 -0.01%
EUR/USD 1.3655 +0.02%
10-Yr Bond 2.6750 -2.59%
GBP/USD 1.6555 -0.08%
USD/JPY 102.335 -0.98%
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Fed pulls back further on bond-buying stimulus despite market jitters
By Don Lee
January 29, 2014, 11:36 a.m.
http://www.latimes.com/business/money/la-fi-mo-fed-policy-20140129,0,6773270.story#axzz2roxPsVe6
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