Here are a few connected facts. Emerging markets have now given back all their outperformance versus developed markets since they became winners on the back of Chinese stimulus in late-2008. Mining stocks in the FTSE World Mining index are back where they stood at their lowest post-Lehman point. And inflation in Brazil has just passed
9 per cent for the first time in more than a decade.
Everything connected to commodities, including a large chunk of emerging markets, looks atrocious. Weakness in Chinese demand and a depressed growth outlook has trashed prices of major commodities, hitting miners. Economic and political cracks long covered up by easy profits from commodity production are being revealed as prices crash, with Brazil, Russia and South Africa all suffering.