The first is uncertainty surrounding the beginning of U.S. monetary normalization. Speculation regarding the possible date of the Federal Reserve’s first hike is great in spite of efforts to confirm intentions to make the process gradual. The second stems from the recent slowdown of China’s economy, with leading indicators suggesting that this trend may continue.
Potentially unsustainable financial imbalances in that country have also raised concerns. As a result, since the middle of 2014, net capital flows to emerging markets have declined, commodity prices have fallen sharply, and most currencies have depreciated against the U.S. dollar.