LONDON (Reuters) – Emerging markets have spent more than two years in a slow-motion crisis with the threat of a U.S. interest rate rise hanging over them. The Federal Reserve’s first hike in nearly a decade, when it finally comes, might actually clear the air.
An eventual rise in borrowing costs has been anticipated since May 2013 when then-chairman Ben Bernanke sparked a global emerging market sell-off by speculating about winding down, or tapering, of the Fed’s money-printing program
LONDON, July 31 (Reuters) – Ukraine sees the end of next
week as the “absolute last deadline” for a debt restructuring
deal with its bondholders, to avoid imposing a moratorium on
payments, a source familiar with the situation said on Friday.
The source also said that a new restructuring proposal
submitted by a group of Ukraine’s biggest creditors does not
represent a better deal for Kiev than a previous plan because of
all the conditions attached to it.
LONDON (Reuters) – U.S. equities’ share in global portfolios fell to the lowest in at least five years and U.S. bond allocations were also cut as nervous investors started readying themselves for the first Federal Reserve rate rise in almost a decade.
But while U.S. assets slipped from favor, investors were bullish on equities overall, as signs of economic recovery gathered momentum across the developed world, boosting allocation to Japanese and euro zone stocks.
LONDON (Reuters) – China’s $2 trillion equity rout may not be over yet but some foreign investors, far from fleeing a volatile market dominated by small-time traders, are swimming against the tide and buying more shares.
Some in this small band of optimists see historical parallels with Japan, where the stock market matured long after its export boom peaked. Others believe private Chinese investors will eventually return, seeking returns on their huge savings.
LONDON, July 29 (Reuters) – Emerging stocks snapped a
five-day run of losses on Wednesday, lifted by a Chinese market
bounce, but currencies were broadly weaker before a Fed meeting
that may set the stage for the first U.S. rate rise in nine
The dollar index is hovering just off two-week lows
before the meeting, at which attention will focus on whether
U.S. Federal Reserve chair Janet Yellen signals September or
December as the most likely date for the move.
LONDON, July 28 (Reuters) – While local Chinese fret over
the bursting of the Shanghai stock bubble, global investors are
more worried about the yuan currency which once seemed destined
to rise inexorably.
A decade after China released the yuan from its peg to the
dollar, ever more international money managers no longer regard
the currency as a one-way appreciation bet that will augment
their returns on stocks and bonds in dollar terms.
LONDON, July 24 (Reuters) – Offshore-traded yuan hit
two-week lows on Friday and volatility rose on weak Chinese data
and authorities’ plans to liberalise currency trading while
other emerging currencies plumbed new multi-month and multi-year
Shares worldwide skidded with the broader emerging MSCI
index down almost 1 percent as data showing Chinese
manufacturing at 15-month lows rekindled concerns for regional
exports and economic growth. Chinese mainland equities slipped
0.6 percent after a six-day run of gains .
LONDON, July 23 (Reuters) – Falling exports are piling
pressure on emerging economies, putting many of them at risk of
a multi-year cycle of sluggish trade, economic growth and
From Korean cars to Chilean copper, exports from emerging
markets are declining year-on-year at the sharpest rate since
the 2008-09 crisis, according to a report by UBS, while Asian
powerhouses such as Korea, Taiwan and Philippines have posted
five to six straight months of dwindling overseas sales.
LONDON, July 23 (Reuters) – Emerging currencies extended
falls on Thursday, with many in Asia at multi-year lows on the
back of U.S. rate hike bets while South Korea’s poor economic
data highlighted the developing world’s growth slowdown.
Emerging equities fell 0.4 percent to nearly a
two-week low, with the index now 3 percent down on the year.
LONDON, July 21 (Reuters) – The Czech crown retreated
further on Tuesday after the central bank’s warning intervention
around the key 27-per-euro mark, while most other emerging
market assets were flat to firmer after the previous day’s
The dollar index was flat at three-month highs. The MSCI
emerging equities index rose 0.4 percent, lifted by
gains on Western bourses and a 0.6 percent rise in China, where
the Shanghai and Shenzen indexes hit three-week highs