The US stock market hasn’t seen a ‘correction’ of 10% or more since the summer of 2011. Now, having gained 50% since then, it seems to be taking a breather.
Last week, the Dow Jones index slid by 3.5%, its worst week since November 2011. The pan-European FTSE Eurofirst 300 index lost 3.25%, falling by 2.4% on Friday alone, the steepest one-day fall in seven months. Japan’s Nikkei has hit a three-month low.
The turbulence stems from emerging markets, which have run into trouble because money is flowing out of risky assets as US monetary policy tightens [...]
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