Volatility In Emerging Markets

Last week emerging stock markets saw volatile trading sessions with stocks of Hong Kong, Taiwan, India moving violently amid alternate bouts of buying and selling clearly signalling nervousness among investor/trader class at hightened levels. Also aiding the volatility is the fact that markets still are confused about the extent to which US fed might cut the rates or will he refrain from any rate cut this time around, and markets have discounted 0.5% rate cut by fed already in much advance. Any rate cut dissapointment might cause temporary selling in emerging markets.