LONDON (Reuters) – Fearful of a looming tumble in stocks and bonds from multi-year highs, global investors have increased the share of safe-haven cash in their portfolios to the highest levels in seven months, while also raising allocation to property.
World stocks hit record highs earlier this month .MIWD00000PUS while Japanese shares .N225, trading off the weak yen, are at 15-year peaks. European bourses from Spain to Germany are up 10-20 percent year-to-date, thanks primarily to money-printing operations in Japan and the euro zone.
LONDON, May 20 (Reuters) – Many holders of Ukrainian bonds
are unperturbed by Kiev’s threat to halt debt payments, noting
that a moratorium would merely bring forward a widely
anticipated default and could even result in a better long-term
deal for investors.
Kiev has ratcheted up pressure on its creditors, the biggest
of which is investment firm Franklin Templeton, by passing a law
allowing the government to call a moratorium on sovereign bond
payments. The finance ministry said it would do so unless a
“good-faith, collaborative” solution was found.
LONDON, May 19 (Reuters) – Stocks and currencies in central
Europe rose on Tuesday on European Central Bank comments about
its bond-buying programme, and a 3 percent surge by Chinese
equities lifted the main emerging markets index to near a
Other emerging market currencies were weaker as the dollar
rose further from its recent four-month lows, but stocks
tracked a record-high close on Wall Street. They got another
boost from an ECB official’s comment that the bank would
front-load its bond purchases.
LONDON, May 18 (Reuters) – The Russian rouble rose almost 1
percent on Monday, shrugging off the central bank’s efforts to
curb its rise, although a bounce in the dollar tempered recent
broad-based gains in emerging currencies.
Asian currencies were led higher by the Taiwanese dollar at
six-month highs, tracking late Friday gains in other emerging
markets after latest data confirmed weaknesses in the U.S.
economy, pushing the greenback to 3-1/2-month lows.
LONDON/HONG KONG May 17 (Reuters) – Emerging corporate bond
funds searching for debt to buy up in the absence of Russian and
Brazilian borrowers have found themselves jostling with a
growing number of cash-rich Asian investors for new issues from
Bonds from Asian companies, largely Chinese, are dominating
the new dollar issue market now that once-prolific Russian and
Latin American borrowers have been shut out by Western sanctions
on Moscow, a corruption scandal at Brazil’s biggest company
Petrobras, weaker commodity prices and fears of a default in
MOSCOW/LONDON, May 14 (Reuters) – Russian companies could
return to international bond markets later this year after being
frozen out by Western sanctions over Ukraine as investor
appetite for the high-yielding debt picks up.
The prospect that non-sanctioned Russian firms would be able
to borrow was remote just a few months ago, but prices of
outstanding bonds have rallied since February, when the latest
truce was agreed in eastern Ukraine.
LONDON, May 14 (Reuters) – Russia’s rouble fell 1.5 percent
on Thursday after the central bank intervened to knock it off 5
1/2-month highs, as other emerging market currencies held on to
the previous day’s gains against a weaker dollar.
Disappointing U.S. data reinforced expectations of U.S.
interest rates would not rise soon, leading most emerging market
currencies to rally on Wednesday. The dollar’s fall to
three-month lows overshadowed a renewed rise in German
bond yields, despite a knock-on effect on Treasuries.
LONDON, May 7 (Reuters) – Investors dumped emerging stocks
and bonds on Thursday, as German and U.S. bond yields hit
multi-week highs, pushing equity indexes down 1-2 percent and
fuelling heavy currency losses.
As outflows gathered pace from emerging assets, options
markets showed implied volatility – a gauge of expected exchange
rate swings – spiking to multi-month highs on currencies ranging
from the Korean won to Polish zloty.
LONDON, April 30 (Reuters) – Many global investors have been
wrong-footed by a 7 percent surge in emerging market equities in
April, as stellar gains in China lifted the benchmark index to
its best monthly showing since early 2012.
Shares listed on China’s mainland bourses
have doubled in value since September, while the
dollar-denominated MSCI China index has gained
nearly 30 percent this year.
LONDON, April 28 (Reuters) – Emerging stocks snapped a
five-day rally on Tuesday as Shanghai stocks fell 2 percent
while expectations for a large interest rate cut knocked the
Russian rouble 1 percent lower.
Chinese stocks posted their biggest one-day loss in almost
two months, falling from seven-year highs as small caps slumped,
partly due to a regulator statement that cautioned investors
against “blindly” buying stocks