EM rout 'won't rock the world'Business | Jeannie Tang 12 Sep 2018
Fitch Ratings said that while the positive emerging market cycle may be over, a market rout is unlikely to lead to a global financial crisis as most emerging economies have healthier balance sheets, but there will likely be changes in their sovereign credit rating.
The Chinese Academy of Social Sciences said the country's economy will face downward pressure next year, estimating year-on-year GDP growth at 6.3 percent, China Securities Journal reported.
Stephen Schwartz, Fitch Ratings's Head of Asia-Pacific Sovereigns, said this is due to the impact of tightening measures to reign in financial risks, exacerbated by trade tensions with the United States.
Fitch Ratings's global head of sovereigns James McCormack expected the Fed to raise interest rates to 3.25 percent by the end of next year, with US dollar remaining strong, but added the Fed would be more cautious in rate hikes afterwards, limiting the room for US dollar growth.