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May 19, 2014

Rwanda, Zambia, Zimbabwe: betting on the youth club

LONDON, May 19 (Reuters) – Three members of Africa’s “youth
club” – Rwanda, Zambia and Zimbabwe – offer some of the
fastest-growing working populations in the world, if only
investors can capitalise on that.

If the countries’ demographic trends can be coupled with
good education to create skilled jobs and an avoidance of
political unrest, this should lead to economic growth quickly
enough to attract portfolio investors, some analysts say.

May 15, 2014

Russia, South Africa, Turkey help stocks to 6 1/2-mth high

LONDON, May 15 (Reuters) – Emerging stocks hit 6 1/2-month
highs on Thursday, with Russia, South Africa and Turkey gaining,
as the prospect of monetary stimulus by bigger economies and
declining geopolitical risk helped to restore the appeal of
emerging markets.

Expectations are growing that the European Central Bank may
even cut rates to negative levels. Federal Reserve Chair Janet
Yellen has said the U.S. economy needs support, and expectations
are rising that China might take steps to stimulate its economy.

May 14, 2014

Stocks jump to six-month high on ECB, Russia

LONDON, May 14 (Reuters) – Emerging-market stocks jumped to
six-month highs on Wednesday as investors welcomed the prospect
of more monetary stimulus in developed markets and a lessening
in geopolitical risk.

The European Central Bank is preparing a package of policy
options for its June meeting, including a potential rate cut to
negative deposit rates, five people familiar with the measures
told Reuters. Negative rates would be likely to
drive investors into higher-yielding emerging markets.

May 9, 2014

Shrugging off tapering, falling emerging debt yields breach key level

LONDON, May 9 (Reuters) – The premium which emerging dollar
bonds hold over U.S. yields has shrunk to a level not seen since
May 2013 when the Federal Reserve flagged plans to taper its
stimulus programme and triggered a sell-off in the risky asset
class.

Now analysts and investors are wondering how far the
tightening in the premium can go. Their views are largely
related to expectations for emerging market growth – and suggest
the narrowing trend may soon run out of steam.

May 7, 2014

Legal minefield of Russia sanctions worries bond investors

LONDON, May 7 (Reuters) – Confusion over the legal
implications of sanctions on Russia and worries about further,
harsher restrictions from the West are making investors cautious
about owning bonds issued by Russian companies.

Two rounds of U.S. sanctions on Russian individuals and
companies, in March and April, have not directly affected any
companies which issue publicly traded debt. EU sanctions are
regarded as even lighter.

May 7, 2014

European shares, dollar weak ahead of Yellen testimony

LONDON (Reuters) – European shares fell and the dollar hovered above six-month lows against a basket of currencies on Wednesday on an overnight drop in U.S. tech stocks and on concerns over the deepening crisis in Ukraine.

Investors were also awaiting congressional testimony from U.S. Federal Reserve Chair Janet Yellen later in the day.

Apr 25, 2014

Investors crossing back to emerging debt from high yield

LONDON, April 25 (Reuters) – Investors are switching their
attention back to developing countries’ debt after flirting with
U.S. and European junk bonds during a year of turbulence in
emerging markets.

A long sell-off in anticipation of U.S. stimulus withdrawal
meant emerging sovereign debt posted negative returns last year
but the sector has enjoyed one of its best starts to a year in a
decade in 2014, investors say, with returns of 5 percent so far.

Apr 24, 2014

Hungarian bond yields fall, Turkish lira rises

LONDON (Reuters) – Hungarian bond yields plunged around 20 basis points on Thursday after a central bank move designed to encourage banks to buy local debt while Turkey’s lira rose anticipating no rate cut at a central bank meeting.

Hungarian domestic bond yields dropped across the curve after the central bank said that from August 1 its two-week bills will be replaced with two-week deposits which will not be accessible to foreign players.

Apr 17, 2014

Pickings for the brave in emerging markets

LONDON, April 17 (Reuters) – The brave few who waded back
into emerging markets in March reaped substantial rewards, but
investors say it is too soon to tell whether the recent bounce
will become a sustained rally.

After three years of underperformance had left them at
rock-bottom valuations, emerging markets enjoyed a surge in the
early days of the northern spring.

Apr 17, 2014

U.S. shares seen opening lower as tech giants stumble

LONDON, April 17 (Reuters) – European shares fell and U.S.
futures pointed to a weaker open on Wall Street on Thursday
after disappointing results from tech heavyweights Google and
IBM, while the dollar fell on dovish U.S. Federal Reserve
comments.

Futures prices suggested U.S. stocks will open 0.2
percent lower. Google released earnings data
after U.S. markets shut on Wednesday, showing that first-quarter
revenue fell short of Wall Street targets and that margins
narrowed.

    • About Carolyn

      "I work in London as part of the Reuters investment strategy editorial team, specialising in emerging and frontier markets. I cover emerging bond, stock and FX markets as well as global market themes, and interview emerging market policy-makers when they attend events in London. I started at Reuters in 1993, writing about foreign exchange, government bonds and Eurobonds before switching to emerging markets."
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