Emerging money markets 'at risk'

Britons using foreign exchange services to buy overseas shares are urged to be cautious with their investments, it has emerged.

Finance expert Bloomberg recently noted that increasing shares prices in emerging markets may soon fall.

Romain Boscher, director from insurer Groupama, told the publication: "Gains came too quickly in the context of a slow economic rebound.

"Valuations are now high and that leaves the door open for a drop. Emerging and developed markets are at risk."

Figures from Bloomberg reveal that global equity from emerging markets soared this month as shareholders invested $26.5 billion (£16 billion) in the three months preceding March.

However, this week the Morgan Stanley Capital International emerging-market index showed a 1.8 per cent fall, indicating that investors are being cautious with their foreign exchange transactions.

Meanwhile, Agence France Presse recently highlighted Poland as a country whose economy has remained fairly robust amid the credit crisis due to its strict fiscal policies.

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By John Mills