Picking apart the global equity sell-off

The further falls in global equities over the past 24 hours have not left EMs unscathed, but in general EMstocks have held up better than DM stocks and there’s little evidence that falls in equities are affectingother EM assets. From an economic standpoint, the big risk for EMs might be a sharp rise in global interestrates, but even here EMs’ vulnerabilities are smaller than they were several years ago.