U.S. interest rates lead the stock market down 16 billion flowed out of emerging markets.

<p style=text-indent: 2em> </ p> <p style=text-indent: 2em> of the Federal Reserve raising interest rates gradually emerging, and with the sharp rise in international oil prices, major changes in capital flows, global stock markets in March .total collapse. .</ P> <p style=text-indent: 2em> Emerging Markets Portfolio Fund from the study (epfr) the company's latest report showed that by March 30 for the week, a total of 1.58 billion from emerging markets .fund outflow, which is since May 12 last year, since the maximum weekly amount of net outflow. .According to previous reports epfr company, in February of net total capital flows to emerging markets nearly 50 billion dollars, over the years, the maximum monthly net inflows. .</ P> <p> <p style=text-indent: 2em> However, since the Fed's seventh rate hike since the outflow of funds accelerate the trend preached. .Previous week, outflows from emerging market funds, 762 million Chinese Communists. .</ P> <p style=text-indent: 2em> Emerging Markets Fund is to invest in world equity funds in emerging markets. .</ P> <p style=text-indent: 2em> Correspondingly, despite the sharp rise in international oil prices, some time ago, Morgan Stanley had fame msci energy index also began to decline in March, and in the whole .March fell 3.4%, two months before the index had jumped 19.35%. .</ P> <p style=text-indent: 2em> while the Morgan Stanley World Index msci the first quarter of 2005 fell 1.8%, and since September 1990 hit the longest losing streak. .</ P> <p style=text-indent: 2em> from "9.11" after, in order to prevent the vicious economic contraction, the Fed began to promote the loose monetary policy, the consequences is the economy began to steadily improve. .As interest rates too low, funds began to flow to other countries and regional markets, resulting in emerging markets over the past two years and commodities markets vigorous. .The current situation is reversed. .Fed interest rate increase after seven consecutive expressed concern about the inflation, interest rates greatly accelerate the trend. .And since March of this has been gradually rising again as oil prices moderate, so capital began to flee high risk assets, resulting in global stock market decline. .</ P> <p style=text-indent: 2em> significance of the Federal Reserve raised interest rates the risk-free rate of return on assets, which are decisive for the significance of financial markets. ."Risk-free level of return of assets is the financial one of the most important data, it co-determines the level of risk of different assets, investors required rate of return." Finance professor at the University of Manchester normanstrong said. ."Although the real risk-free asset does not exist, but the market is often short-term U.S. Treasuries as a synonym for risk-free assets, but also is seen as the cost of capital." </ P> <p style = text-indent: 2em .> "For U.S. investors, the most secure assets are government bonds, in fact, U.S. corporate bonds, while emerging market equity risk is quite high. the rise in low-risk return on assets will directly lead investor return requirements for high-risk assets .rise, and the resulting outcome is that the stock market, especially high-risk emerging market stock prices and capital outflows. "One currency analyst told reporters. ."Because of the Asian currency appreciation in some countries and regions, the expected influx of hot money earlier this year has greatly promoted the local stock market, the current rise in the cost of funds, some funds have been signs of withdrawal, which the local stock market .caused no small impact. "</ p> <p style=text-indent: 2em> msci global emerging market index fell 7.3% in March, which msci Asian emerging market index fell 5.7% in March, while stock prices in Latin America .more tragic, in which Argentina's stock market fell in March to 12.38%. .</ P> <p style=text-indent: 2em> "Fed funds futures prices show one or two at the next Federal Reserve meeting on interest rates will raise rates by 50 basis points once, and the performance of the Federal Reserve will likely than .thought even tougher. "Merrill Lynch Investment Management Limited President and Chief Investment Officer at Merrill Lynch robertdoll report posted on the website said. ."And, even if the economy and corporate profits show the vitality of high oil prices and high interest rates will not help the stock market performance." New York Mercantile Exchange (nymex) 5 4 month crude oil prices reached a record high of $ 58.28. .</ P> <p style=text-indent: 2em> Dutch bank's chief Asian strategist in Hong Kong King Eddie (eddiewong) recommended investors sell emerging market equities in Asia, because the Federal Reserve to raise interest rates to attract funds out of riskier securities. .He said: "With the rise in U.S. interest rates gradually, slowly began to feel the impact of the Asian markets." (Lin Chunjie) </ p> <p style = text-indent: 2em.