“What we are seeing in emerging markets is a very fragile investor sentiment,” Rohit Arora, a fixed income strategist at Barclays Plc, said in the article. “The focus has been countries with higher current-account deficits and investors are questioning how those countries will fund their deficits in an environment of tight liquidity when the Fed starts to tighten the monetary policy.”

iShares MSCI Emerging Markets ETF

For more information on developing countries, visit our emerging markets category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own EEM.