Investment strategy Correspondent
Sujata's Feed
Nov 9, 2015

Fed expectations knock emerging assets; India lags

LONDON, Nov 9 (Reuters) – India was the weak link in
emerging markets on Monday after a regional election defeat for
the pro-business ruling party while mounting expectations of a
U.S. rate rise pushed emerging shares to one-month lows.

The dollar stands near seven-month highs and 10-year U.S.
bond yields have surged as strong jobs growth last month and a
drop in the unemployment rate to April 2008 lows have increased
the likelihood that the Federal Reserve will raise rates in
December for the first time in almost a decade.

Nov 6, 2015

Big funds cautiously raise allocations to cheap emerging stocks

LONDON (Reuters) – After several false dawns in emerging market equities, some big asset managers reckon it could be time to start buying even if the sector’s recent rally looks fragile.

Once-booming emerging markets have underperformed their developed peers for five years running. Investors who bought into the sector five years ago would be sitting on a 6 percent loss now if they tracked MSCI’s benchmark index. By contrast, an investment following the U.S. S&P500 would have returned 13 percent, asset manager Blackrock notes.

Nov 6, 2015

Investors put more cash into Europe equity funds

LONDON (Reuters) – Investors pumped $2.6 billion into European equity funds in the past week, extending their run of gains but emerging equities snapped a month-long winning streak as $1.2 billion exited, Bank of America Merrill Lynch said on Friday.

Inflows into equity funds overall tapered off to $2 billion, the lowest in four weeks, though this masked strong interest in European stocks which have now taken in new money for 23 out of the past 25 weeks, according to BAML data, which also includes numbers from Boston-based fund tracker EPFR Global.

Nov 6, 2015

Investors put more cash into Europe equity funds, exit EM-BAML

LONDON, Nov 6 (Reuters) – Investors pumped $2.6 billion into
European equity funds in the past week, extending their run of
gains but emerging equities snapped a month-long winning streak
as $1.2 billion exited, Bank of America Merrill Lynch said on
Friday.

Inflows into equity funds overall tapered off to $2 billion,
the lowest in four weeks, though this masked strong interest in
European stocks which have now taken in new money for 23 out of
the past 25 weeks, according to BAML data, which also includes
numbers from Boston-based fund tracker EPFR Global.

Nov 6, 2015

Emerging assets retreat before US data; tenge at new record low

LONDON, Nov 6 (Reuters) – Emerging market assets retreated
on Friday for the second day in a row as the U.S. dollar flexed
its muscles but Chinese stimulus expectations boosted mainland
stocks which ended with weekly gains of over 6 percent.

The dollar firmed to three-month highs against a basket of
major currencies before the release of U.S. jobs data which
could give investors clues on whether interest rates could be
raised in December.

Nov 4, 2015

Kazakh privatisation wave may start next year via stake sales, IPOs – official

LONDON, Nov 4 (Reuters) – Kazakhstan, buffeted by lower oil
revenues, is determined to complete long-delayed privatisations
that will cut state ownership in 60 of the biggest firms and
many more smaller ones, the head of the country’s investment
agency said on Wednesday.

The privatisations, which may start as early as next year,
will be carried out via a mix of stock market listings and sales
of strategic stakes, Borisbiy Zhangurazov, executive chairman of
the Kaznexinvest agency, said in an interview.

Nov 2, 2015

Turkey outperforms subdued emerging markets after election result

LONDON, Nov 2 (Reuters) – An outright election win for
Turkey’s ruling AK Party helped Turkish assets score sharp gains
on Monday, outperforming other emerging markets where moves were
subdued amid persistent worries over China’s economy.

Emerging markets, which face the twin headwinds of a slowing
Chinese economy and a looming U.S. interest rate rise, saw
MSCI’s equity benchmark stay flat. The sector was pressured by
1.6 percent losses in mainland Chinese shares after data showed
fresh manufacturing contractions .

Oct 30, 2015

European investors buy into ECB QE, sell U.S. assets

LONDON (Reuters) – European investors cut U.S. stock and bond holdings in October and allocations fpr European assets as they focussed on monetary policy divergence between the United States and elsewhere.

A Reuters poll conducted from Oct. 19 to 28 found that investors had further trimmed overall equity allocations to new 10-month lows of 44.9 percent.

Oct 30, 2015

European investors buy into ECB QE, sell U.S. assets: Reuters poll

LONDON (Reuters) – European investors cut U.S. stock and bond holdings in October and allocations fpr European assets as they focused on monetary policy divergence between the United States and elsewhere.

A Reuters poll conducted from Oct. 19 to 28 found that investors had further trimmed overall equity allocations to new 10-month lows of 44.9 percent.

Oct 21, 2015

Poland’s election risk rattles investors

LONDON, Oct 21 (Reuters) – Losses on Polish financial
markets have highlighted investors’ anxiety over the country’s
expected lurch towards populist, pro-welfare policies after
Sunday’s election, but a history of rock-solid growth should
shield against a broader selloff.

The main opposition Law and Justice (PiS) party is tipped to
win the parliamentary poll. Socially conservative and
eurosceptical, PiS has called for sharp increases in public
spending and wants banks to foot the bill for converting
households’ hard currency loans into zlotys.