Karin's Feed
Jul 2, 2015

Investors see growing risks in Nigeria’s devaluation delay

LONDON, July 2 (Reuters) – International investors, dismayed
by Nigeria’s decision to delay a naira devaluation they see as
long overdue, will hold back from its stock and bond markets,
raising risks of a deeper crisis in Africa’s biggest economy.

The afterglow from March, when an incumbent president handed
over power after what was seen as Nigeria’s freest ever
election, is dissipating as new leader Muhammadu Buhari shows
little sign of following up on promises of economic reform.

Jun 24, 2015

Ukraine creditors lament unequal treatment of creditors

LONDON (Reuters) – A group of international funds holding Ukrainian sovereign bonds criticized Kiev on Wednesday for targeting them for principal haircuts as part of a debt restructuring without asking other creditors to take such cuts.

Ukraine is negotiating with bondholders to restructure $23 billion of debt as part of a broader International Monetary Fund-led bailout package.

Jun 23, 2015

Prospect of Greece deal lifts eastern Europe, emerging stocks

LONDON, June 23 (Reuters) – Emerging market stocks rose to
near three-week highs with Chinese shares bouncing off recent
lows on Tuesday, and optimism over a possible rescue deal for
Greece put wind into the sails of eastern European assets
despite a stronger dollar.

MSCI’s broadest emerging market index gained 0.4
percent and the Asia ex-Japan index was up 0.8
percent. Chinese stocks ended a volatile session 3.2 percent
higher as investors renewed their faith in the China bull run
despite recent sharp corrections .

Jun 19, 2015

Emerging stocks set for fifth week of losses on dollar, Greece

LONDON, June 19 (Reuters) – Emerging market stocks were on
track for their fifth straight week in the red on Friday as
China shares tumbled to their steepest weekly losses since 2008,
their eight-month bull run losing steam fast on tighter
regulation and a wave of IPOs.

MSCI’s broadest emerging markets stock index fell
0.2 percent on the day and was down 0.4 percent for the week,
with investors fretting over the dollar bouncing off
Thursday’s one-month low, China stocks venturing into correction
territory and Greece slowly grinding towards default.

Jun 18, 2015

Emerging stocks get a lift from dovish Fed

LONDON, June 18 (Reuters) – Emerging market stocks rose for
a second day on Thursday after the U.S. Federal Reserve tempered
expectations for the pace of interest rate rises, while some
eastern European assets came under more pressure due to the
Greek crisis.

The MSCI emerging markets stock index gained 0.7
percent after Fed policymakers cut growth forecasts and
indicated interest rates could rise more slowly than markets had
expected, with the dollar edging down to a fresh
four-week low.

Jun 17, 2015

Emerging Europe’s debt insurance costs jump on Greece worries

LONDON, June 17 (Reuters) – Polish debt insurance costs hit
15-month highs on Wednesday and bond yields across eastern
Europe hovered near multi-month peaks as the prospect of a Greek
default prompted investors to reassess their exposure to the
region.

While some analysts reckon fears of widespread and lasting
contagion are overblown, Greece’s possible euro exit and fears
of bank runs there are taking a toll on regional markets,
especially in the Balkans which retain trade and banking links
with the stricken euro zone country.

Jun 15, 2015

Saudi bourse readies for flurry of foreign investor licences

LONDON, June 15 (Reuters) – A flurry of foreign licences for
Saudi Arabia’s stock exchange could be awarded in the coming
weeks after the first investors have been allowed direct entry
to the $564 billion market, the bourse’s chief executive said on
Monday.

The Riyadh stock exchange is one of the last major bourses
to open to foreigners and its opening up is one of the most
hotly anticipated changes in the region, holding similar promise
to China’s stock markets reform.

Jun 12, 2015

Emerging stocks set for 4th week in red on huge fund outflow

LONDON, June 12 (Reuters) – Emerging stocks got a lift from
China on Friday, but looked set for their fourth straight
lossmaking week while currencies stayed under pressure from a
stronger dollar and the prospect of looming U.S. rate hikes.

MSCI’s emerging stock index rose 0.4 percent after
China stocks ended the day as much as 1.4 percent higher
on signs of renewal in the sluggish real estate market
and ahead of earnings and a fresh wave of IPOs.

Jun 11, 2015

Templeton’s Mobius says MSCI’s decision on China A-shares was right

LONDON, June 11 (Reuters) – MSCI’s decision not to include
China’s A-shares in its benchmark emerging markets equity index
was the right move for investors, veteran emerging markets
investor Mark Mobius said on Thursday.

U.S. index provider MSCI Inc said on Tuesday that
China had to further liberalise its capital markets before its
domestic stocks, called A-shares, could be included in one of
MSCI’s global benchmarks.

Jun 9, 2015

GCC countries need to slash public spending – World Bank

LONDON (Reuters) – Falling oil prices have led to welcome reforms of the subsidy programmes in Gulf countries, but they urgently need new ways to distribute their oil wealth and shrink their public sectors, the World Bank’s chief economist for the region said on Tuesday.

The Gulf, dominated by oil exporters, has relied on crude-oil revenues to fund governments over the past decades. But budgets have been buckling under the pressure of bloated public sectors and lavish welfare spending since oil prices dropped from some $115 a barrel last June to as low as $45 in January.