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Mar 20, 2014

Dollar hits three-week high, world stocks fall as U.S. rate rise comes into focus

LONDON (Reuters) – The dollar hit three-week highs against a basket of currencies and stocks and bonds fell across the globe on Thursday as investors positioned for a speedier rise in U.S. interest rates than previously thought.

Global stocks as measured by the MSCI world equity index dropped 0.9 percent after Federal Reserve Chair Janet Yellen said on Wednesday the U.S. central bank might end its bond-buying programme this autumn, and could start to raise interest rates around six months later.

Mar 20, 2014

Dollar hits 3-week high, stocks fall as US rate rise comes into focus

LONDON, March 20 (Reuters) – The dollar hit three-week highs
against a basket of currencies and stocks and bonds fell across
the globe on Thursday as investors positioned for a speedier
rise in U.S. interest rates than previously thought.

Global stocks as measured by the MSCI world equity index
dropped 0.9 percent after Federal Reserve Chair
Janet Yellen said on Wednesday the U.S. central bank might end
its bond-buying programme this autumn, and could start to raise
interest rates around six months later.

Mar 20, 2014

Dollar upbeat on rate rise expectations, bonds fall

LONDON (Reuters) – The dollar steadied at higher levels on Thursday and stocks and bonds fell across the globe as investors positioned for U.S. interest rates to rise sooner and faster than previously thought.

Global stocks as measured by the MSCI world equity index .MIWD00000PUS dropped 0.6 percent, adding to the previous day’s losses after Federal Reserve Chair Janet Yellen said the U.S. central bank might end its bond-buying program this autumn, and could start to raise interest rates around six months later.

Mar 20, 2014

Dollar upbeat on rate rise expectations

LONDON (Reuters) – The dollar steadied at higher levels on Thursday and stocks and bonds fell across the globe as investors positioned for U.S. interest rates to rise sooner and faster than previously thought.

Global stocks as measured by the MSCI world equity index dropped 0.6 percent, adding to the previous day’s losses after Federal Reserve Chair Janet Yellen said the U.S. central bank might end its bond-buying program this autumn, and could start to raise interest rates around six months later.

Mar 19, 2014

Offshore Russian stocks attract premium in jittery markets

LONDON, March 19 (Reuters) – Offshore Russian stocks are
trading at a high premium to onshore stocks, brokers and
analysts said on Wednesday, as traders worry about access to
domestic Russian markets.

The higher price for offshore stocks – global (GDR) or
American (ADR) depositary receipts – compared with the locally
listed stocks mirrors the premium investors have been paying for
offshore derivative contracts in the rouble currency.

Mar 18, 2014
via Global Investing

Russian investing: offshore or onshore

Nerves about the potential impact of sanctions on Russian banks and the orderly functioning of Russian markets are driving investors to trade Russian rouble forwards offshore rather than onshore, even though the central bank told Reuters today it will not impose capital controls

Several Russian companies are also trading at a higher price in the offshore (GDR/ADR) market than the local stock markets, according to research by Bank of America-Merrill Lynch. The price difference  in some cases such as Mobile Telesystems and Magnit is as big as 15-16 percent, BofA/ML notes.

Mar 17, 2014

Offshore rouble premium rises on Russia sanction jitters

LONDON, March 17 (Reuters) – The premium to trade Russian
roubles offshore has increased in foreign exchange derivative
markets, traders and brokers said on Monday, as market
participants worry that onshore rouble contracts might not be
honoured.

The United States and European Union slapped sanctions on
Russian and Ukrainian officials after Crimea voted on Sunday to
secede from Ukraine and join Russia. Among them are two top
advisers to Russian President Vladimir Putin.

Mar 13, 2014

Fickle foreign flows add to problems on home territory

LONDON, March 13 (Reuters) – Foreign investors’ growing
presence in sub-Saharan African financial markets has made those
assets more vulnerable to contagion from losses in bigger
emerging markets and problems on the home turf are not helping.

Drawn by Africa’s fast economic growth, its emerging middle
class and juicy returns offered by frontier markets in the
region, foreign investors have raised their stakes in recent
years.

Mar 12, 2014

MSCI plans to add China A shares to emerging index from May 2015

LONDON, March 12 (Reuters) – Index compiler MSCI plans to
include China’s mainland-based A shares in its benchmark
emerging market index from May 2015, as the country gradually
opens up its markets to foreign investors.

MSCI has started consultations with investors and will make
a final decision in June, the firm said in the consultation
document. (here)

Mar 10, 2014

High-yield bonds draw investors as emerging debt loses them

LONDON, March 10 (Reuters) – Shove over, emerging markets -
high-yield debt has taken your place.

Emerging-market bonds, star performers just a year ago, are
being replaced by high-yielding corporate debt from developed
markets by investors searching for yield.

    • 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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