Global Economic Prospects : Financial Market Outlook, July 2013

Global financial markets were largely stable during the past year, not with-standing the recent uptick in volatility amid uncertainty over the timing of an eventual tapering off of quantitative easing. Improved financial conditions are reflected in a strong rebound in gross capital flows (international bond issuance, cross-border syndicated bank loans and new equity placements) to developing countries, which were 63 percent higher in the first five months of 2013 than during the same period in 2012. Foreign direct investment (FDI) inflows to developing countries increased by 9 percent during the first quarter of 2013 on a year-on-year basis, with a mixed picture across countries. Since late May, financial market volatility has increased, with increased expectations about possible tapering of U.S. quantitative easing in coming months and uncertainty over its impacts. Although there have been some large stock market corrections in some Asian countries, so far the overall impact has been moderate. Bond yields on developing country debt are also on the rise as base rates and spreads increase.

Bibliographic Details

Main Authors:	Aykut, Dilek, Kim, Eung Ju
Language:	English en_US
Published:	World Bank, Washington, DC 2013-07
Subjects:	ACCOUNTING, ASSET PRICES, BAILOUT, BALANCE OF PAYMENTS, BANK FINANCING, BANK LENDING, BANK LOANS, BANK OF JAPAN, BANK SPREADS, BANKING SYSTEM, BANKING UNION, BASIS POINTS, BENCHMARK, BENCHMARK YIELDS, BENEFICIARY, BOND BANK, BOND FINANCING, BOND FLOWS, BOND ISSUANCE, BOND ISSUERS, BOND ISSUES, BOND SPREAD, BOND SPREADS, BOND YIELDS, BONDHOLDERS, BONDS, BORROWING COST, BORROWING COSTS, BP, BPS, CAPITAL CONTROLS, CAPITAL FLOWS, CAPITAL OUTFLOWS, CAPITAL RATIO, CDS, CENTRAL BANK, CENTRAL BANKS, COMMODITY, COMMODITY PRICES, COMPOSITE INDEX, CONSUMER BASE, CORPORATE BOND, CORPORATE BOND ISSUANCE, CORPORATE EARNINGS, COST OF CAPITAL, COUNTRY DEBT, COUNTRY EQUITIES, CREDIT DEFAULT, CREDIT DEFAULT SWAP, CREDIT QUALITY, CREDITORS, CURRENCY ASSETS, CURRENT ACCOUNT BALANCE, DEBT CRISIS, DEBT FLOWS, DEBT ISSUANCE, DEBT MARKETS, DEBT SECURITIES, DEBT SWAPS, DEFLATION, DEPOSIT, DEPOSITORS, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPING COUNTRY STOCK MARKET, DEVELOPING COUNTRY STOCK MARKETS, DEVELOPING ECONOMIES, DOMESTIC MARKET, EARLY REPAYMENT, ECONOMIC OUTLOOK, EMERGING MARKET, EMERGING MARKET EQUITY, EMERGING MARKET EQUITY FUNDS, EMERGING MARKETS, EQUITY BOND, EQUITY FLOWS, EQUITY FUNDS, EQUITY INDEX, EQUITY ISSUANCE, EQUITY MARKET, EQUITY MARKETS, EUROBOND, EUROPEAN CENTRAL BANK, EXPOSURES, EXTERNAL DEBT, FEDERAL RESERVE, FINANCIAL ASSETS, FINANCIAL CRISIS, FINANCIAL MARKET, FINANCIAL MARKETS, FISCAL CONSOLIDATION, FOREIGN ASSETS, FOREIGN CURRENCY, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTMENT, FOREIGN INVESTORS, FOREIGN MARKETS, FOREIGN OWNERSHIP, GDP, GLOBAL ECONOMIC PROSPECTS, GLOBAL FINANCIAL MARKETS, GLOBAL FINANCIAL STABILITY, GLOBAL RISK, GLOBAL STOCK MARKETS, GOVERNMENT BONDS, GOVERNMENT DEFICITS, GROWTH POTENTIAL, HOLDING, HOLDINGS, INCOME, INCOME FUNDS, INITIAL PUBLIC OFFERING, INTEREST RATE, INTEREST RATE DIFFERENTIALS, INTERNATIONAL BOND, INTERNATIONAL BOND MARKET, INTERNATIONAL BOND MARKETS, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL INVESTMENT, INVESTMENT FLOWS, INVESTMENT TRUST, INVESTMENT TRUSTS, INVESTOR CONFIDENCE, INVESTOR INTEREST, IPO, ISSUANCES, JURISDICTIONS, LABOR COSTS, LENDERS, LOAN, LOCAL CURRENCY, LOCAL DEBT, LONG-TERM MATURITY, MARKET LIQUIDITY, MARKET PERFORMANCE, MARKET RETURNS, MARKET UNCERTAINTY, MARKET VOLATILITY, MATURITY, MIDDLE-INCOME COUNTRIES, MONETARY POLICY, MULTINATIONAL CORPORATIONS, MUTUAL FUNDS, NATURAL RESOURCES, NET CAPITAL, OFFSHORE BANKING, POLITICAL RISKS, PORTFOLIO, PORTFOLIO INVESTMENT, PORTFOLIOS, PRIVATE CAPITAL, PRIVATE CAPITAL FLOWS, PRIVATE CAPITAL INFLOWS, PRIVATE CREDITORS, PRIVATE DEBT, PRIVATE SECTOR DEBT, PRIVATIZATION, PRODUCTION COSTS, PROPERTY MARKETS, RATING AGENCIES, REGULATORY ENVIRONMENT, REPAYMENT, RETURN, RISK AVERSION, RISK PROFILES, S&P, SECONDARY-MARKET, SHORT-TERM DEBT, SOVEREIGN BOND, SOVEREIGN DEBT, SOVEREIGN DEBT RESTRUCTURING, SOVEREIGN DEFAULT, SOVEREIGN RATINGS, STOCK MARKET, STOCK MARKET INDEX, STOCK MARKET INDEXES, STOCK MARKET INDICES, STOCK MARKETS, TRADE FINANCE, TREASURIES, TREASURY, TREASURY BOND, TREASURY BOND YIELD, TREASURY BOND YIELDS, TREASURY YIELD, TREASURY YIELDS, TRUST FUNDS, VOLATILITY, WAGES, WORKING CAPITAL, WORLD TRADE, WORLD TRADE ORGANIZATION,
Online Access:	http://documents.worldbank.org/curated/en/2013/07/23946603/null https://hdl.handle.net/10986/21526
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