Analysts at BNP Paribas explained that in the latest edition of its Global Financial Stability Report (GFSR), the IMF argues that the importance of financial spillovers has grown significantly over the last two decades. Key Quotes: "In particular, spillovers from emerging economies’ financial markets may now account for more than a third of the variation in advanced economies’ equity and foreign exchange returns. The importance of financial integration has increased relative to the trade channel in explaining these spillovers. In addition, the report also provides evidence that surprises about macroeconomic fundamentals in emerging market economies have had an increasing impact on stockmarkets around the world." For more information, read our latest forex news.