Harris: Global economies caught in 'mini-cycles of growth improvements'

Emerging market weakness has been so pervasive that many are now extremely sensitive to any marginal positive change, says City Financial's Mark Harris.

If you had not noticed, many emerging market equity markets and currencies have suffered full blown bear markets. We had been warning for some time that emerging market equity, bond, currency and credit markets were likely to suffer badly as countries and companies struggled with the ill effects of the previous massive debt expansion, the strong US dollar, weak global growth and weak commodity prices. Two recent papers by the IMF and World Bank have highlighted the growth in emerging market corporate debt combined with record outflows of capital. The Institute of International Finance...