World stocks were close to lows of six-weeks Wednesday, while vulnerable currencies in emerging markets extended losses as market investors looked to the report from the U.S. Federal Reserve that is expected to signal when the cutback of its bond buying stimulus program will begin.

Ben Bernanke, the Chairman of the Federal Reserve announced in June he expected the bank to taper its bond buying that is currently at $85 billion per month.

That triggered a selloff globally that weighed on the emerging markets, which benefit from having the extra liquidity.

The thought by the majority of analysts is the minutes of the July meeting of the Fed, due to be released on Wednesday at 2:00 ET, will touch upon a policy shift in September.

Those worries have hit the rupee in India, the Lira in Turkey and the rupiah in Indonesia, even despite the central banks in each country making encouraging remarks.

The rupiah looked to break through the 11,000 per U.S. $1 level, the rupee hit a record low against the dollar and the lira was nearing an all time low.

With large account deficits in all three of the countries, they are very vulnerable to outflows of capital when monetary tightening takes place.

Emerging markets have also shared in the recent selloff as more investors believe an end to the bond buying by the U.S. Fed due to a stronger economic outlook in the U.S. makes investing in equity markets and developed debt a sounder investment.

The MSCI, which tracks emerging and developed markets, was lower by 0.25% to levels it has not seen since the early part of July.

The Nikkei in Japan ended Wednesday trading 0.2% higher as Haruhiko Kuroda the Governor of the Bank of Japan said he would not hesitate in expanding the huge asset-buying program of the bank if the outlook economically started to darken.

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Abby is fun loving yet serious professional, born and raised in Sioux Falls, SD. She has a great passion for journalism, her family includes her husband, two kids, two dogs and herself. She has pursued her Mass Communication graduation degree from the Augustana College. She is currently employed at, an online news media company located in Sioux Falls, SD.

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