Along with Turkey in the emerging markets, the VanEck Vectors India Small-Cap Index ETF (NYSEArca: SCIF) declined 38.6% and VanEck Vectors ChinaAMC CSI 300 ETF (NYSEArca: CNXT) decreased 38.3% in 2018.
India’s market has been gripped by political risks. In the latest round, state elections revealed Prime Minister Narendra Mod’s party would face a tight electoral contest in key states ahead of next year’s general election. Further exacerbating the sell-off, India’s central bank governor Urjit Patel resigned, citing personal reasons, which investors interpreted as a sign of divisions between the Reserve Bank of India and Modi’s government worsening.
Lastly, nothing much can be said about China if one was secluded in a cave for most of 2018 as the escalating trade war between Washington D.C. and Beijing dragged down global sentiment, especially interest in China.
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