Investment strategy Correspondent
Sujata's Feed
Apr 7, 2014

Russian assets lead way lower on renewed tensions with Ukraine

LONDON, April 7 (Reuters) – Russian stocks tumbled more than
1 percent on Monday and the rouble slipped on worries over
renewed tensions with Ukraine while broader emerging equities
and currencies also eased, tracking moves on global markets.

Pro-Russian protesters seized official buildings in several
eastern Ukrainian cities on the weekend, including the mining
city of Donetsk. They demanded a referendum on whether to join
Russia like that held in Crimea that paved the way for its
annexation by Russia.

Apr 4, 2014

Cash trickles back to emerging markets, faces growth challenge

LONDON, April 4 (Reuters) – Investors are starting to move
back in to emerging stocks and bonds after a long hiatus, data
from fund tracker EPFR shows, but the economic slowdown gripping
the developing world is likely to constrain market rallies.

Emerging stock and bond funds saw their first weekly inflows
after more than $50 billion fled in the first three months of
2014, with equities snapping a 22-week losing streak,
Boston-based EPFR Global said.

Apr 4, 2014

Emerging mkts slip before US jobs; lira hit by PM comments

LONDON, April 4 (Reuters) – The Turkish lira slumped half a
percent on Friday, moving off recent three-month highs as
comments from the prime minister renewed fears of political
interference, leading a general emerging market retreat before
U.S. jobs data.

Investors were waiting for the March U.S. non-farm payrolls
later in the day to see if the world’s biggest economy is
finally regaining momentum after an extreme winter. A robust
jobs report could prompt the Federal Reserve to step up the pace
of stimulus withdrawal – broadly seen as a negative for emerging
markets.

Apr 4, 2014

Emerging funds snap losing streak after over $50bln Q1 outflows

LONDON, April 4 (Reuters) – Emerging market stock and bond
funds saw their first inflows over the past week after over $50
billion fled in the first three months of 2014, with equities
snapping a 22-week losing streak, data from EPFR Global shows.

The Boston-based fund tracker, which tracks funds with $23
trillion in assets, released details of first quarter flows late
on Thursday, showing that all emerging equity fund categories
had shed $41 billion, following $26.7 billion losses in 2013.

Apr 1, 2014
via Global Investing

Ukraine and the IMF: a sense of deja vu

The West has just agreed to stump up a load of cash for Ukraine but there is a distinct sense of deja vu around it all.

Let’s face it – Ukraine’s track record on how it manages ts economy and foreign affairs isn’t great. This is the third aid programme Kiev has signed with the International Monetary Fund in a decade and two of them have failed. The IMF has its fingers crossed that this one will not go the way of the past two. Reza Moghadam, the IMF’s top European official, tells Reuters in an interview:

Apr 1, 2014

Investors cast fresh eye on battered emerging stocks

LONDON, April 1 (Reuters) – Investors are starting to look
afresh at emerging equities after years in which the sector has
been a consensus “sell”.

Barclays, Citi, HSBC, Morgan Stanley and Societe Generale
are among banks now advising clients to buy back in – albeit
selectively – after a prolonged sell-off that has slashed
valuations.

Mar 31, 2014

Emerging market quarterly bond issuance tops $100 bln

LONDON, March 31 (Reuters) – Emerging market borrowers
raised just over $100 billion worth of debt in the first quarter
of 2014, slightly below year-ago levels as geopolitical noise
and uncertainty over U.S. Federal Reserve plans dampened
investor appetite.

Emerging sovereign and corporate issuers launched $106.2
billion in hard currency bonds between Jan. 1 and March 27, data
compiled by Thomson Reuters shows, well below the $124.5 billion
that was launched in the first quarter of 2013.

Mar 26, 2014
via Global Investing

Braving emerging stocks again

It’s a brave investor who will venture into emerging markets these days, let alone start a new fund. Data from Thomson Reuters company Lipper shows declining appetite for new emerging market funds – while almost 200 emerging debt and equity funds were launched in Europe back in 2011, the tally so farĀ  this year is just 10.

But Shaw Wagener, a portfolio manager at U.S. investor American Funds has gone against the trend, launching an emerging growth and income fund earlier this month.

Mar 25, 2014
via Global Investing

CORRECTED-Toothless or not, Western sanctions bite Russian bonds

(corrects last paragraph to show that Timchenko was Gunvor’s co-founder, not a former CEO)

Western sanctions against Russia lack bite, that’s the consensus. Yet the bonds of some Russian companies have taken a hit, especially the ones whose bosses have been targeted for visa- and asset freezes.

Mar 24, 2014

Chinese stimulus hope, Russia calm boost emerging assets

LONDON, March 24 (Reuters) – Chinese shares shrugged off
fresh signs of economic slowdown on Monday, leading emerging
equities to two-week highs, and the rally helped Russian assets
to recoup recent heavy losses.

China’s manufacturing contracted in March for the third
straight month, a preliminary private survey showed. HSBC’s
flash manufacturing purchasing managers index (PMI) fell to an
eight-month low in March, the latest in a string of indicators
pointing to a loss of growth momentum.