Investment strategy Correspondent
Sujata's Feed
Aug 26, 2015

Analysis – FX pegs under pressure in emerging markets as commodity prices fall

LONDON (Reuters) – Plunging commodity prices are testing the viability of emerging currencies’ long-standing pegs to the dollar, with some already abandoned as countries balk at the cost of clinging to fixed exchange rates.

Kazakhstan unshackled its tenge last week, and bets are growing that from Hong Kong to Saudi Arabia, dollar pegs are at risk.

Aug 26, 2015

FX pegs under pressure in emerging markets as commodity prices fall

LONDON (Reuters) – Plunging commodity prices are testing the viability of emerging currencies’ long-standing pegs to the dollar, with some already abandoned as countries balk at the cost of clinging to fixed exchange rates.

Kazakhstan unshackled its tenge last week, and bets are growing that from Hong Kong to Saudi Arabia, dollar pegs are at risk.

Aug 26, 2015

Emerging market assets weaken again despite China’s rate cut

LONDON, Aug 26 (Reuters) – Emerging market assets resumed
their slide on Wednesday, shrugging off China’s interest rate
cut and focusing on growing signs of economic weakness in the
world’s second-largest economy and across the developing world.

Oil and metals prices lingered at multi-year lows, keeping
pressure on currencies and stock markets and leading markets to
give up gains triggered by the Chinese move to cut rates and
bank reserve ratio requirements. Analysts reckon the reserve
cuts will boost liquidity more than $100 billion.

Aug 24, 2015

Emerging assets hit new multi-year lows on China contagion

LONDON, Aug 24 (Reuters) – Contagion from China’s equity
malaise spread across emerging markets on Monday, driving a 4
percent tumble in the benchmark equity index while currencies
fell 1-2 percent to multi-year lows against the dollar.

Fears for the world’s No. 2 economy pushed Chinese mainland
stocks listed in Shenzen and Shanghai into their biggest one-day
fall since February 2007. They lost more than 8 percent and are
now in the red for 2015 .

Aug 12, 2015

Ukraine goes head-to-head with creditors for last ditch deal

KIEV/LONDON Aug 12 (Reuters) – Ukraine and a group of its
largest creditors will meet on Wednesday for make-or-break talks
that look highly unlikely to deliver an amicable deal to
restructure $19 billion of debt.

The often bitter negotiations have dragged on for five
months, snared on whether the bonds’ face value should be
written down. Kiev says it will halt debt payments if an
agreement is not reached this week.

Aug 12, 2015

Central banks wade in as forex losses spiral

LONDON, Aug 12 (Reuters) – Emerging stocks, bonds and
currencies extended losses on Wednesday after China allowed its
yuan to weaken for the second straight day, with some central
banks forced to curb sharp falls in their currencies.

The yuan touched 6.4508 per dollar, its lowest
since July 2011, after authorities lowered the midpoint in the
yuan’s trading range by 1.6 percent. Offshore-traded yuan lost 2
percent.

Aug 11, 2015

Emerging assets weaken after yuan devaluation

LONDON, Aug 11 (Reuters) – Emerging market currencies
tumbled on Tuesday in the wake of China’s record 1.9 percent
currency devaluation, which took offshore-traded yuan 2.5
percent lower and rekindled fears for growth in the world’s No.
2 economy.

China’s central bank cut the yuan’s daily fix, effectively
devaluating it against the dollar after data released on the
weekend showed an 8.3 percent slump in Chinese exports. Bigger
moves down in the more freely traded offshore yuan pushed the
spread between it and its onshore counterpart
to its widest in more than 10 months.

Aug 7, 2015

Fed up with waiting, U.S. hike needed to clear emerging markets air

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

Jul 31, 2015

Ukraine sees end of next week as “absolute” deadline for debt deal

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.

Jul 31, 2015

Funds add equities but cut U.S stocks to five-year low as Fed looms

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.