LONDON, Nov 2 (Reuters) – World stocks and the euro edged up
on Wednesday after a rollercoaster week, as investors hoped for
comfort on the weak U.S. economy and troubled euro zone from
meetings of the U.S. Federal Reserve and Group of Twenty
Greece’s prime minister George Papandreou won the backing of
his cabinet on Wednesday to hold a referendum on a 130 billion
euro bailout package, a decision that had sent markets into a
tailspin in the previous sessions.
Still-nervy markets may move out of their recent sweet spot if hopes of emerging market help for the euro zone fail to materialise.
China and Brazil could yet invest in the euro zone’ rescue fund, the EFSF, but India and Russia are looking less willing.
Things are likely to move slowly for the economy of post-Gaddafi Libya, if the experiences of some of its neighbours are anything to go by.
Heading into elections, the post-Arab Spring markets of Egypt and Tunisia continue to find it difficult to pick up speed.
Kazakh officials meet in London today for the annual Kazakhstan Business Forum, and may find it a harder sell than in the past.
Although oil prices have been strong and the central bank has kept the tenge stable, investors are worried that the country may be heading for more trouble with its banking sector.
LONDON, Oct 19 (Reuters) – Emerging stocks rose 1 percent
and sovereign debt spreads tightened on Wednesday, cheered by
speculation about more resources to rescue indebted euro zone
Senior EU officials said no agreement had been reached on
increasing the size of the euro zone’s bailout fund, dismissing
a report in Britain’s Guardian newspaper that said France and
Germany had reached such a deal.
Emerging market economies are starting to show a split between those raising rates to fend off runs on their currencies, and those cutting rates to spur on growth as global recession/depression talk intensifies.
Many of the larger emerging economies, like Brazil and Indonesia, have followed developed-world counterparts in cutting rates. Brazil, which had been crying over currency wars for months, complaining that U.S. money-printing has driven the Brazilian real to uncompetitively high levels, can stand the recent fall in its currency. Other countries that may follow suit with rate cuts include Thailand, Mexico and South Africa.
LONDON (Reuters) – The prospect of a hefty Greek government debt restructuring and writeoff has sent the bonds into a twilight zone that’s attracting specialist distressed-debt traders more used to dealing with defaulted emerging sovereigns like Argentina.
Greece was ditched last year from developed country government bond indices that are typically tracked by the big, often conservative, global institutional funds.
LONDON, Oct 12 (Reuters) – Emerging stocks hit three-week
highs for a second successive day on Wednesday and sovereign
debt spreads tightened, helped by a jump in Chinese stocks and a
more positive outlook on the euro zone debt crisis.
Markets have been in thrall to each step in the euro zone’s
attempts to resolve its debt woes, and recent optimism has taken
riskier emerging assets higher.
Oct 3 (Reuters) – Spooked by concerns that Franklin
Resources Inc’s (BEN.N: Quote, Profile, Research, Stock Buzz) flagship fund is overexposed to
volatile emerging markets, investors last week pulled more
money out of the best-selling fund than they put into it for
the first time in almost a year.
Withdrawals of $393.6 million during the week ended Sept.
28 marked the first week of outflows from the U.S. registered
portion of Franklin’s Templeton Global Bond Fund TPINX.O
since the week ended Dec 15, 2010, according to data from
Lipper, a Thomson Reuters unit.
LONDON (Reuters) – Sovereign and corporate borrowers from emerging economies are unlikely to meet ambitious full-year targets for new debt sales after a torrid third-quarter for high-yield bonds as financial markets froze on double-dip recession fears.
The sector borrowed a record $300 billion (192 billion pounds) in 2010, according to some industry estimates, taking up the slack for the absence from the market of some high profile sovereign issuers in the euro zone.