LONDON (Reuters) – Usually prolific borrowers on global markets, Russian companies are finding their funding lifeblood cut off by banks and asset managers who fear their investments will get caught up in the standoff between Moscow and the West.
With military tensions running high between Russia and Ukraine and a looming threat of tough Western economic sanctions, it is getting harder for companies to issue bonds or obtain loans – a situation that could eventually threaten some of them with default.
LONDON (Reuters) – Emerging-market stocks fell for a third straight day on Wednesday, hurt by China’s weak factory data and Ukraine’s decision to resume a military offensive against pro-Russia rebels.
A preliminary survey showed Chinese factory activity contracted for a fourth straight month in April, leading the yuan to fall to 18-month lows against the dollar and casting a pall over Asian currencies and stock markets.
LONDON, April 17 (Reuters) – Russian stocks pared gains on
Tuesday after President Vladimir Putin accused the authorities
in Kiev of plunging Ukraine into an “abyss”.
But the rouble edged up for the second straight day on
Thursday along with broader emerging assets as U.S. Fed chair
Janet Yellen’s comments on monetary policy overshadowed
escalating tensions in eastern Ukraine.
LONDON (Reuters) – Emerging equities inched off three-week lows on Wednesday after Chinese data soothed fears of an abrupt growth slowdown, with gains also filtering through to Russian markets despite simmering geopolitical tensions.
China’s economy grew 7.4 percent in the first quarter from a year earlier, slightly above forecasts and bringing relief to markets which had been spooked by a recent string of soft numbers.
LONDON, April 15 (Reuters) – Governments and companies from
the developing world are increasingly turning to euro debt
markets, lured by the falling costs of borrowing there and
European investors’ clamour for relatively higher returns.
Romania sold a 10-year euro-denominated bond on Tuesday
yielding 3.625 percent, following on the heels of Turkey which
last week raised 1 billion euros via a nine-year bond at a 4.2
LONDON, April 15 (Reuters) – Ukraine’s hryvnia jumped from
recent record lows on Tuesday after a 300-basis-point (bps)
interest rate rise but ratcheting tensions with neighbouring
Russia kept up pressure on regional as well as broader emerging
Russia declared Ukraine on the brink of civil war as Kiev
said an “anti-terrorist operation” against pro-Moscow
separatists was under way, though the crackdown appeared to get
off to a slow start.
After almost a year of selling emerging markets, investors seem to be returning in force. The latest to turn positive on the asset class is asset and wealth manager Pictet Group (AUM: 265 billion pounds) which said on Tuesday its asset management division (clarifies division of Pictet) was starting to build positions on emerging equities and local currency debt. It has an overweight position on the latter for the first time since it went underweight last July.
Local emerging debt has been out of favour with investors because of how volatile currencies have been since last May, For an investor who is funding an emerging market investments from dollars or euros, a fast-falling rand can wipe out any gains he makes on a South African bond. But the rand and its peers such as the Turkish lira, Indian rupee, Indonesian rupiah and Brazilan real — at the forefront of last year’s selloff – have stabilised from the lows hit in recent months. According to Pictet Asset Management:
LONDON (Reuters) – From Greece to Ecuador to Pakistan, countries that not long ago saddled bondholders with multi-billion dollar defaults, are set to re-enter global markets, cashing in on investors’ desperate need for higher-yielding assets.
With debt yields in the euro zone at multi-year lows and 30-year U.S. Treasuries offering less than 3.6 percent, investors are again scrambling for higher-return assets – a hunger that such pariah credits, are well placed to satisfy.
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.
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.