Investment strategy Correspondent
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May 27, 2014

Russia leads emerging markets lower after fighting in east Ukraine

LONDON, May 27 (Reuters) – Russian stocks slumped 2 percent
on Tuesday and the rouble fell from four-month highs, leading
broad-based emerging market losses as flaring violence in
eastern Ukraine took the edge off optimism fuelled by smooth
weekend elections.

The Ukraine vote yielded a clear win for confectionary
magnate Petro Poroshenko who has promised to seek a meeting with
Putin to establish stability in eastern Ukraine. The smooth
election also averts the immediate threat of fresh Western
sanctions against Russia.

May 23, 2014

Emerging stocks set for fourth week of gains; politics a constraint

LONDON, May 23 (Reuters) – Emerging equities headed for a
fourth straight week of gains on Friday, supported by optimism
over world growth though fears of election-related unrest in
Ukraine held the market near 6-1/2 month highs.

MSCI’s emerging equity index was flat and is about
10 percent off levels it was at when a May 22 2013 speech by
ex-Federal Reserve boss Ben Bernanke set off a tidal wave of
selling by warning of a reduction in U.S. money-printing.

May 19, 2014

Emerging stocks just off 6-1/2 mth highs on China; Russian assets surge

LONDON, May 19 (Reuters) – Emerging stocks traded just off
recent 6-1/2 month highs on Monday, held back by a 1.4 percent
fall in China but buoyant sentiment lifted most bourses and
currencies to multi-month peaks.

While Indian stocks rose 1 percent they kept off recent
record highs. Russian markets hit levels unseen since March 3,
when parliament approved President Vladimir Putin’s right to
intervene militarily in Ukraine.

May 16, 2014

Egypt could tap global bond market after political transition -finmin

LONDON, May 16 (Reuters) – Egypt could tap global bond
markets after presidential elections due May 26-27, but should
the country be in dire need, it could seek aid from its wealthy
Gulf neighbours, finance minister Hany Kadiri Dimian said on

Political turmoil following the uprising that toppled
autocrat Hosni Mubarak in 2011 has hammered the economy of 85
million people as foreign investors and tourists have fled.

May 15, 2014

Global, local funds may drive next push in Indian equity rally

LONDON/MUMBAI May 15 (Reuters) – With emerging equity funds
positioned for a business-friendly outcome to India’s election,
any further boost for the pumped-up stock market may come from
global funds whose India allocation still has room to grow.

Election results due on Friday are expected to reveal a
strong mandate for the opposition BJP, seen as more pro-business
than its rivals. Those expectations have fuelled year-to-date
stock market gains of 14 percent and a 4 percent rise in the
rupee’s exchange rate against the dollar.

May 14, 2014

Turkish lira gets a boost from global yield hunger

ISTANBUL/LONDON May 14 (Reuters) – Turkey’s shrinking
current account deficit, its improved policy credibility and an
all-out hunt for yield are steadily pushing the lira, one of
last year’s emerging-market laggards, towards the key 2 per
dollar level.

The lira appreciation is likely to be short-lived. Turkey
still relies on external funding; political unrest could yet
erupt during upcoming elections. But for the time being, global
and domestic factors are working in its favour.

May 13, 2014

India, Russia lead emerging stocks to 1-month high

LONDON, May 13 (Reuters) – Indian equities climbed 2 percent
on Tuesday, leading emerging markets to one-month highs. Wall
Street’s strong showing the day before session also boosted

Emerging markets have in recent weeks largely shrugged off
escalating tensions in Russia and Ukraine and lacklustre Chinese
data. Investors have focussed instead on signs of economic
growth, stable U.S. Treasury yields and strong U.S. corporate

May 9, 2014

Election optimism buoys S.Africa, India; emerging stocks set for 2nd week of gains

LONDON, May 9 (Reuters) – South African bond yields fell to
six-month lows on Friday and the rand held near 4-1/2-month
highs as markets cheered the outcome of this week’s vote while
election optimism also drove Indian stocks almost 3 percent

Broader emerging equities were flat, however, after touching
two-week highs in the previous session, weighed down by weakness
in China, though MSCI’s main emerging markets index
was heading for its second straight week of gains.

May 8, 2014

From South Africa to Hungary, bond markets profit from Russian losses

LONDON, May 8 (Reuters) – Emerging market investors are
dumping once-hot rouble bonds due to the threat of tougher
sanctions hanging over Russia, shifting funds to the likes of
South Africa, Hungary and Turkey which only recently had been

Seemingly conciliatory comments from President Vladimir
Putin on the Ukraine crisis have soothed markets this week. But
fears remain that the West – which has so far targeted only a
small number of Russian individuals and firms – will impose
harsher sanctions, including on the financial sector.

Apr 28, 2014

Russia-West tensions weigh on stocks, buoy oil prices

LONDON (Reuters) – World stocks steadied above 10-day lows on Monday, with investors holding back from making aggressive bets as tensions between Russia and the West over Ukraine showed no sign of easing.

MSCI’s world equity index .MIWD00000PUS was flat after falling 0.7 percent on Friday.