Although the GDP growth in the emerging markets is much more than the average GDP growth of the world (QWLD), emerging markets involve risks.
A rise in geopolitical tensions could cause higher market volatility. Today’s low volatility suggests that the market hasn’t factored in the possibility of geopolitical risks picking up.
The people of Taiwan fear that political unification with China could have grave consequences for their economy.
Taiwan is one of the world’s largest exporters of semiconductors and other high-tech electronic components, and China wants to use this to its advantage.
In the last two years, Chinese companies have raised $43 billion in IPOs in the Hong Kong market, versus just $25 billion on the Chinese stock exchanges.
Hong Kong still relies heavily on China for its income and growth.
The National People’s Congress said that Hong Kong would have the right to vote in 2017 elections only if a nominating committee pre-screens candidates.
So far in 2014, the capitalization of the Chinese stock market has already increased by 33% to $4.48 trillion.
The Shanghai-Hong Kong Stock Connect should benefit foreign investors, Chinese corporations, and the Chinese economy at large.
A new link exists between Hong Kong’s Hang Seng stock exchange and the Shanghai stock exchange in mainland China: the Shanghai-Hong Kong Stock Connect.
On November 17, China took its first step towards opening up its stock market to foreign investment with the Shanghai-Hong Kong Stock Connect program.
Energy os the strongest yet most delicate Russia-Ukraine trade link. Ukraine imports nearly 50% of its gas from Russia.
The Russian economy is suffering losses at a rate of $90 billion–$100 billion a year due to the oil price drop and the weak ruble.
On July 16, the US imposed additional sanctions against Russia for continuing to support pro-Russian separatists in Ukraine.
The Iron Curtain symbolized the conflict dividing Europe into two areas from the end of World War II in 1945 until the end of the Cold War in 1991.
Ukraine’s economy highly depends on Russia across a range of sectors. The most prominent is natural gas. Ukraine has no short-to-medium-term alternative.
On September 26, Ukraine’s government said that it wished to join the North Atlantic Treaty Organization (NATO) in the short term.
Under the IMF loan program to Ukraine, Ukraine would need to make a series of policy changes—all of which would hurt its economy.
Ukraine is in a state of economic free-fall. Ever since the country became independent in 1991, it has been afflicted by poor governance and corruption.
You can characterize the past year as anything but stable for the economies of emerging Europe. These include Russia, Ukraine, Poland, Croatia, and Turkey.