FTSE declined from its peak last May to more than 10 percent.

Brazil, being among the big 4 emerging markets closed at 3 per cent. It dropped more than 20 per cent from its highest this year. The prices of securities plummeted as well.

Nicholas Gartside said, "It's been fairly violent and extreme." Nicholas Gartside, is from JP Morgan Asset Management where he is Head of International fixed income. The sudden leap of the Yen at 2.9 percent which triggered investors to trade on Yen funded risky assets.

Investor redemptions has also affected emerging market fund managers. Those who focus on international bonds last week suffered the most. It has seen the biggest withdrawal form investors since the middle of 2007.

Nonetheless, fund managers advise to be wary of overly gloomy forecasts.

Gregor Macintosh, Head of government debt and currencies, at Lombard Odier advised ,"Given how violent and volatile the markets have been it's best to watch this from the sidelines for now."