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Emerging Markets Plunge as Inflation Concerns Trigger Global Selloff

Emerging-market equities and currencies suffered their worst week since March amid escalating inflation concerns tied to Middle East tensions. The selloff extended across global bond markets, where yields climbed to multi-year highs as borrowing costs spiked from Tokyo to New York. Central banks face mounting pressure to tighten monetary policy if crude prices remain elevated, a scenario that has spooked investors worldwide. The bond market turmoil halted an earlier equity rally, with corporations in Europe rushing to lock in financing before rates climb further. Oil prices remained a key flashpoint, with geopolitical risk premium intact as traders assess potential supply disruptions. Market participants now price in higher interest rates across developed economies.