Investment strategy Correspondent
Sujata's Feed
Oct 20, 2015

China central bank launches debut dim sum bond in London at 3.1 pct yield

HONG KONG/LONDON Oct 20 (Reuters) – China’s central bank
sold its first-ever dim sum bond on Tuesday, placing a one-year
issue in London with a yield of 3.10 percent and order books six
times the amount it had planned to sell.

Coinciding with a high-profile state visit to Britain by
Chinese President Xi Jinping, the bond is effectively a gesture
to fortify London’s role as a non-Asian yuan trading centre
.

Oct 20, 2015

Investment tide may have turned for crisis-hit Russia

LONDON/MOSCOW, Oct 20 (Reuters) – With among the highest
bond yields in the world and fears of corporate debt defaults
receding, Russia is luring back some investors who seem to agree
with President Vladimir Putin that the crisis-hit economy is
over the worst.

Putin said last week Russia may have reached the peak of an
economic crisis worsened by last year’s oil price fall and
Western sanctions imposed to punish the Kremlin over its role in
the conflict in east Ukraine.

Oct 16, 2015

Cash flows to emerging market funds for first time in three months

LONDON (Reuters) – Investors betting on a delay to U.S. policy tightening put new money into emerging equity and bonds funds for the first time in at least three months, while global stocks saw the first inflow in four weeks, Bank of America/Merrill Lynch said on Friday.

Data from BAML, which also includes figures from Boston-based fund tracker EPFR Global, showed equities and bonds had both received inflows in the week to Oct 14. While demand grew for riskier junk-rated and emerging debt, government and Treasury bond funds saw small outflows, the first in 15 weeks.

Oct 16, 2015

Cash flows to emerging market funds for first time in 3 mths-BAML

LONDON, Oct 16 (Reuters) – Investors betting on a delay to
U.S. policy tightening put new money into emerging equity and
bonds funds for the first time in at least three months, while
global stocks saw the first inflow in four weeks, Bank of
America/Merrill Lynch said on Friday.

Data from BAML, which also includes figures from
Boston-based fund tracker EPFR Global, showed equities and bonds
had both received inflows in the week to Oct 14. While demand
grew for riskier junk-rated and emerging debt, government and
Treasury bond funds saw small outflows, the first in 15 weeks.

Oct 15, 2015

Mexico, Malaysia lead FX reserve falls in emerging markets ex-China

LONDON, Oct 15 (Reuters) – Mexico, Indonesia and Malaysia
saw some of the sharpest falls in central bank reserves over the
past quarter as investor flight from emerging markets forced
policymakers to defend their currencies.

The issue has drawn particular attention after Chinese
reserves, the world’s biggest, fell by a record $180 billion in
the third quarter due to interventions to support the yuan after
a mid-August devaluation.

Oct 12, 2015

Deep-pocketed institutional funds scaling back emerging markets

LONDON, Oct 12 (Reuters) – Big pension, insurance and
sovereign funds may be scaling back investments in emerging
markets amid disappointing returns and a darkening outlook for
the sector.

These deep-pocketed funds — global pension assets alone are
worth over $35 trillion — are relatively recent entrants to
emerging markets, driven by the collapse in Western bond yields
and the need for diversification. Because they are focused on
the long term, their presence has been a powerful counterweight
to skittish retail and hedge fund money.

Oct 12, 2015

Turkey suicide bombing weighs on lira, bourse

LONDON, Oct 12 (Reuters) – Turkish stocks and the lira fell
on Monday and debt insurance costs rose as a blast that killed
up to 128 people over the weekend raised fears of further
pre-election turmoil, though many other emerging assets extended
their recent gains.

The double suicide bombing at a rally of pro-Kurdish and
labour activists in Ankara is likely to exacerbate divisions
between supporters of Turkey’s ruling AK Party and Kurdish
groups before a Nov. 1 vote.

Oct 8, 2015

Equity rally stalls as German data casts cloud over global growth

LONDON (Reuters) – Global stocks traded just off three-week highs on Thursday after unexpectedly weak trade and machinery orders data from Germany and Japan hinted at a stalling in the momentum of some of the world’s biggest economies.

An oil price bounce, a flat dollar and gains in Chinese markets provided some support, but with worries growing over Germany and the U.S. Federal Reserve due to release minutes of its last meeting, investors were wary of extending world shares’ six-day rally any further.

Oct 8, 2015

Global equity rally stalls as German data casts cloud over global growth

LONDON (Reuters) – Global stocks traded just off three-week highs on Thursday after unexpectedly weak trade and machinery orders data from Germany and Japan hinted at a stalling in the momentum of some of the world’s biggest economies.

An oil price bounce, a flat dollar and gains in Chinese markets provided some support, but with worries growing over Germany and the U.S. Federal Reserve due to release minutes of its last meeting, investors were wary of extending world shares’ six-day rally any further.

Oct 7, 2015

After 10-month closure, Russian bond market creaks open again

LONDON/MOSCOW Oct 7 (Reuters) – Mining firm Norilsk Nickel’s
success in selling Russia’s first big foreign bond in nearly a
year hints at some revival of investor interest towards the
sanctions-hit and energy-sapped economy. But it’s a trickle not
a flood.

Including the $1 billion Norilsk bond, this year’s Russian
dollar bond issuance amounts to $1.35 billion, a far cry from
the pre-2014 era when Russian firms were among the biggest bond
sellers in emerging markets, borrowing $60 billion or more each
year.