Investment strategy Correspondent
Sujata's Feed
Sep 1, 2015

Weak growth keeps emerging assets on the ropes

LONDON, Sept 1 (Reuters) – A raft of weak economic data kept
emerging assets on the ropes on Tuesday, with stocks extending
August’s heavy losses and central banks scrambling to control
currencies’ relentless slide against the dollar.

Data showed Chinese and Taiwanese manufacturing contracted
at the fastest pace in three years while South Korean exports
fell the most in six years, reflecting weakness within emerging
economies as well as their overseas markets.

Aug 28, 2015

European funds buy bonds, keep cash levels high given equity volatility – Reuters poll

LONDON (Reuters) – Spooked by China’s equity rout and the possibility of a deeper financial crisis, European investors have increased exposure to safe-haven bonds to the highest level in 2015 while keeping cash allocations near three-year highs.

A Reuters poll conducted between Aug. 10 and 27 found investors’ nerves jangled by China, where a currency devaluation and wild equity volatility have raised concern that the economy could slow more drastically than investors had foreseen – a fear reinforced by a steady stream of weak data.

Aug 26, 2015

Analysis – FX pegs under pressure in emerging markets as commodity prices fall

LONDON (Reuters) – Plunging commodity prices are testing the viability of emerging currencies’ long-standing pegs to the dollar, with some already abandoned as countries balk at the cost of clinging to fixed exchange rates.

Kazakhstan unshackled its tenge last week, and bets are growing that from Hong Kong to Saudi Arabia, dollar pegs are at risk.

Aug 26, 2015

FX pegs under pressure in emerging markets as commodity prices fall

LONDON (Reuters) – Plunging commodity prices are testing the viability of emerging currencies’ long-standing pegs to the dollar, with some already abandoned as countries balk at the cost of clinging to fixed exchange rates.

Kazakhstan unshackled its tenge last week, and bets are growing that from Hong Kong to Saudi Arabia, dollar pegs are at risk.

Aug 26, 2015

Emerging market assets weaken again despite China’s rate cut

LONDON, Aug 26 (Reuters) – Emerging market assets resumed
their slide on Wednesday, shrugging off China’s interest rate
cut and focusing on growing signs of economic weakness in the
world’s second-largest economy and across the developing world.

Oil and metals prices lingered at multi-year lows, keeping
pressure on currencies and stock markets and leading markets to
give up gains triggered by the Chinese move to cut rates and
bank reserve ratio requirements. Analysts reckon the reserve
cuts will boost liquidity more than $100 billion.

Aug 24, 2015

Emerging assets hit new multi-year lows on China contagion

LONDON, Aug 24 (Reuters) – Contagion from China’s equity
malaise spread across emerging markets on Monday, driving a 4
percent tumble in the benchmark equity index while currencies
fell 1-2 percent to multi-year lows against the dollar.

Fears for the world’s No. 2 economy pushed Chinese mainland
stocks listed in Shenzen and Shanghai into their biggest one-day
fall since February 2007. They lost more than 8 percent and are
now in the red for 2015 .

Aug 12, 2015

Ukraine goes head-to-head with creditors for last ditch deal

KIEV/LONDON Aug 12 (Reuters) – Ukraine and a group of its
largest creditors will meet on Wednesday for make-or-break talks
that look highly unlikely to deliver an amicable deal to
restructure $19 billion of debt.

The often bitter negotiations have dragged on for five
months, snared on whether the bonds’ face value should be
written down. Kiev says it will halt debt payments if an
agreement is not reached this week.

Aug 12, 2015

Central banks wade in as forex losses spiral

LONDON, Aug 12 (Reuters) – Emerging stocks, bonds and
currencies extended losses on Wednesday after China allowed its
yuan to weaken for the second straight day, with some central
banks forced to curb sharp falls in their currencies.

The yuan touched 6.4508 per dollar, its lowest
since July 2011, after authorities lowered the midpoint in the
yuan’s trading range by 1.6 percent. Offshore-traded yuan lost 2
percent.

Aug 11, 2015

Emerging assets weaken after yuan devaluation

LONDON, Aug 11 (Reuters) – Emerging market currencies
tumbled on Tuesday in the wake of China’s record 1.9 percent
currency devaluation, which took offshore-traded yuan 2.5
percent lower and rekindled fears for growth in the world’s No.
2 economy.

China’s central bank cut the yuan’s daily fix, effectively
devaluating it against the dollar after data released on the
weekend showed an 8.3 percent slump in Chinese exports. Bigger
moves down in the more freely traded offshore yuan pushed the
spread between it and its onshore counterpart
to its widest in more than 10 months.

Aug 7, 2015

Fed up with waiting, U.S. hike needed to clear emerging markets air

LONDON (Reuters) – Emerging markets have spent more than two years in a slow-motion crisis with the threat of a U.S. interest rate rise hanging over them. The Federal Reserve’s first hike in nearly a decade, when it finally comes, might actually clear the air.

An eventual rise in borrowing costs has been anticipated since May 2013 when then-chairman Ben Bernanke sparked a global emerging market sell-off by speculating about winding down, or tapering, of the Fed’s money-printing program