11.09.201423:37:47UTC+00Emerging stocks fall on new sanctions, ruble at record low

Emerging-market stocks dropped to its sixth consecutive day of decline as the ruble weakened to a record low on New EU sanctions to be joined in by the US versus against.

The MSCI Emerging Markets Index shed 0.6% to 1,068.56. Russia’s ruble, meanwhile, is at record lows, shedding 0.6% as well to match the dollar at 37.50595 per dollar.

On Thursday, reports were released that the European Union and the United States would be increasing sanctions versus Russia. Investors are cautious about the geopolitical tension as US President Barack Obama announced on Wednesday that new plans to combat Islamic State Militants are in the works The New EU sanctions due to tensions in  Ukraine will be imposed against Russia tomorrow. The sanctions will take effect as the bloc plan out the conditions for the suspension of measures in the future.

Economist at Nordea Bank Denmark, Anders Svendsen commented to Bloomberg that the sanctions boost the general uncertainty and prolong the time of “no-solution.” Svendsen adds that there is “a big question mark” on whether the the geopolitical situation will escalate.

Across the global market, investors are still wary as more hints that the Federal reserve Bank will be increasing interest rates sooner than expected proliferate the global markets. The next Fed meeting will be on September 16-17.