Carolyn's Feed
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.

Apr 17, 2014

European stocks dip, dollar weakens

LONDON (Reuters) – European stocks dipped on Thursday as disappointing earnings from U.S. tech heavyweights Google and IBM dampened the previous session’s upbeat tone on Wall Street, and the dollar weakened on dovish remarks from the Federal Reserve.

Google Inc fell as much as 6 percent after first-quarter revenue fell short of Wall Street targets and margins narrowed as its ads prices decline persisted.

Apr 17, 2014

Google, IBM cast shadow

LONDON (Reuters) – European stocks dipped on Thursday as disappointing earnings from U.S. tech heavyweights Google and IBM dampened the previous session’s upbeat tone on Wall Street, and the dollar weakened on dovish remarks from the Federal Reserve.

Google Inc fell as much as 6 percent after first-quarter revenue fell short of Wall Street targets and margins narrowed as its ads prices decline persisted.

Apr 16, 2014

More risk in sight as key frontier index faces re-jig

LONDON, April 16 (Reuters) – Life may be about to get even
riskier for investors in some of the world’s riskiest markets.

Investors could find it harder to use the closely watched
MSCI frontiers index to benchmark their
performance when it loses major constituents next month.

Apr 11, 2014
via Global Investing

Toxic trio turns tantalising

Dubbed the Toxic Trio earlier this year,  the high-yield bond markets of Argentina, Ukraine and Venezuela are starting to look a lot more appealing.

Argentina and Venezuela were the biggest beneficiaries of the recent rally in emerging market debt, according to data from JP Morgan, which says it has added an overweight Argentina position to its existing overweight in Venezuela, and has Ukraine at market-weight:

Apr 10, 2014

Emerging stocks near 5-month highs, China gains

LONDON, April 10 (Reuters) – Emerging-market stocks rose to
their highest in nearly five months on Thursday, as attractive
valuations brought back investors and Chinese stocks rallied on
a new cross-border investment rule.

Worries about the winding down of the Federal Reserve’s
bond-buying programme, lack of domestic reforms and weak
earnings data have been driving investors out of emerging
markets since the middle of last year. Now the tide has turned,
despite concern about the longer-term outlook.

Apr 2, 2014
via Global Investing

And the biggest loser was…Belgium

The largest downswing in the BlackRock Sovereign Risk Index over the past quarter was not Ukraine, despite the annexation of its Crimea region and Russian troops on its borders, but Belgium.

Belgium, part of the euro zone’s core, fell four points in the index to 31st place, due to the amount of debt due this year. BlackRock says:

    • 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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