Investment strategy Correspondent
Sujata's Feed
Jan 31, 2014

Steady after rollercoaster week but pressure still on

LONDON, Jan 31 (Reuters) – Emerging markets steadied in
holiday-thinned trade on Friday, with currencies such as the
rouble and lira trading just off multi-year lows after dramatic
central bank action to counter the biggest sell-off in years.

Many markets in Asia were closed for the lunar New Year
holidays, cutting trade volumes. MSCI’s benchmark equity index,
of which China comprises a fifth, traded just off 4-1/2 month
lows though stock markets in Russia and Turkey were
almost 1 percent lower .

Jan 30, 2014

Growth, investment at risk from emerging markets rate hikes

LONDON (Reuters) – A growth-crushing downward spiral looks imminent for emerging markets, threatening to turn back the tide of foreign investment that flooded into developing countries on the premise of fast economic expansion.

Countries in Asia, Latin America and emerging Europe are being forced to raise interest rates sharply to stave off currency collapses and a wholesale exodus of foreign investors. Turkey, India and South Africa jacked up rates this week, heaping pressure on others to follow suit.

Jan 30, 2014

Analysis: Growth, investment at risk from emerging markets rate hikes

LONDON (Reuters) – A growth-crushing downward spiral looks imminent for emerging markets, threatening to turn back the tide of foreign investment that flooded into developing countries on the premise of fast economic expansion.

Countries in Asia, Latin America and emerging Europe are being forced to raise interest rates sharply to stave off currency collapses and a wholesale exodus of foreign investors. Turkey, India and South Africa jacked up rates this week, heaping pressure on others to follow suit.

Jan 29, 2014

Turkish rate hike boost fades, focus on S.Africa c.bank

LONDON, Jan 29 (Reuters) – The boost to Turkey’s lira from a
round of huge interest rate hikes quickly faded on Wednesday,
while the rand fell as the market focus switched to monetary
policy decisions due later in the day in South Africa and from
the U.S. Federal Reserve.

Turkish debt insurance costs fell and the country’s recent
dollar bond rallied after the central bank jacked up all of its
interest rates late on Tuesday, in a move investors saw as long
overdue.

Jan 29, 2014

Turkish rate hike boost starts to fade, S.Africa faces pressure

LONDON, Jan 29 (Reuters) – Turkey’s lira posted its biggest
one-day gain in more than five years on Wednesday after huge
interest rate hikes, but the impact was already starting to
fade, while South Africa now also faces pressure to tighten
policy.

Turkish debt insurance costs slumped and its sovereign bond
yield premia to U.S. Treasuries fell 20 basis points.

Jan 28, 2014

Emerging markets as vulnerable as ever to contagion

LONDON/NEW YORK/SINGAPORE, Jan 27 (Reuters) – Emerging
markets may be unrecognisable from the small and fragile
economies that fell like dominoes 15 years ago, but they are
just as vulnerable today to the same sort of indiscriminate
selling when investor panic sets in.

As even the relatively robust economies of Mexico and Poland
now feel the heat from disparate flashpoints from Turkey to
Argentina, there are growing doubts that emerging markets have
built any immunity to such contagion.

Jan 27, 2014

Analysis: Emerging markets as vulnerable to contagion as ever

LONDON/NEW YORK/SINGAPORE (Reuters) – Emerging markets may be unrecognizable from the small and fragile economies that fell like dominoes 15 years ago, but they are just as vulnerable today to the same sort of indiscriminate selling when investor panic sets in.

As even the relatively robust economies of Mexico and Poland now feel the heat from disparate flashpoints from Turkey to Argentina, there are growing doubts that emerging markets have built any immunity to such contagion.

Jan 27, 2014

Emerging markets as vulnerable to contagion as ever

LONDON/NEW YORK/SINGAPORE Jan 27 (Reuters) – Emerging
markets may be unrecognisable from the small and fragile
economies that fell like dominoes 15 years ago, but they are
just as vulnerable today to the same sort of indiscriminate
selling when investor panic sets in.

As even the relatively robust economies of Mexico and Poland
now feel the heat from disparate flashpoints from Turkey to
Argentina, there are growing doubts that emerging markets have
built any immunity to such contagion.

Jan 27, 2014

Turkish lira recovers, Brazil real drops in 3rd day of EM rout

LONDON/RIO DE JANEIRO, Jan 27 (Reuters) – The Turkish lira
rebounded on Monday after the central bank called an emergency
meeting, but Brazil’s real resumed its slide on fears the recent
sell-off in emerging markets could spread, potentially derailing
the global economic recovery.

Currencies and stocks in Asia and Eastern Europe suffered a
fresh bout of selling early on Monday but trimmed losses later
after Latin American markets opened mostly in the black.

Jan 15, 2014

Russia rouble float may hurt investors now but help in long run

LONDON, Jan 15 (Reuters) – Russia’s move towards a flexible
rouble exchange rate may well prove a boon for the struggling
economy, but foreign stock and bond investors should brace for
short-term losses as the currency finds a new level.

The Russian central bank this week scrapped so-called
targeted interventions, bringing an end to hard currency sales
of up to $60 million a day and indicating that a planned shift
to a fully floating rouble on Jan. 1, 2015, is on track.