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Mar 10, 2014

Weak Chinese data hurts emerging stocks, knocks India off highs

LONDON, March 10 (Reuters) – Emerging stocks fell 1 percent
on Monday, pulled down by poor Chinese economic data that
re-ignited concerns of slowdown in the world’s No. 2 economy and
pushed Chinese shares to a five-year closing low.

Chinese mainland shares fell more than 3 percent
and the losses rippled across emerging markets, dragging the
main emerging equity benchmark off six-week highs hit
last week.

Mar 7, 2014

India leads emerging stocks higher; Ukraine fears ease

LONDON, March 7 (Reuters) – Indian shares rallied to record
highs on Friday on hopes of a market-friendly outcome to
upcoming elections, leading broader emerging equities to
six-week highs ahead of key U.S. jobs data.

Investors are awaiting the U.S. payrolls numbers that could
provide clues about the pace at which the U.S. Federal Reserve
reduces monthly bond-buying. But there was some relaxation in
recent market tensions over Ukraine, where many had feared the
outbreak of fully-fledged war with Russia.

Mar 5, 2014

Ukraine bonds fall as restructuring mooted; investors weigh options

LONDON, March 5 (Reuters) – Ukraine’s short-dated dollar
bonds plunged by as much as 6 cents on Wednesday after the
country’s finance minister said it may start talks with
creditors on restructuring debt, though Western aid pledges
helped prices to recover.

Ukrainian bond prices have been under pressure for weeks
despite prospects of a multi-billion dollar International
Monetary Fund bailout, as the state of the country’s economy and
the sheer weight of debt repayments made a restructuring likely.

Mar 4, 2014

Russian, Ukrainian assets bounce as immediate tensions ease

LONDON, March 4 (Reuters) – Russian equities, bonds and the
rouble soared on Tuesday and Ukraine’s assets rallied after
Russian moves that investors took as a sign of an easing in
East-West tensions.

Russian President Vladimir Putin said Moscow would only use
force in Ukraine “as a last resort” after ordering troops
involved in a military exercise in western Russia back to base.

Mar 4, 2014
via Global Investing

More development = fewer violent deaths in India

A recent report highlights the importance of economic development for India and indeed for all developing countries. It also shows why we should worry about the slow pace of reform in India and how that has hit growth rates.

Bank of America/Merrill Lynch analysts have picked up a report from the Institute for Conflict Management, a New Delhi-based think tank, showing that terrorism-linked deaths in India last year were 6 times lower than in 2001, a development they ascribe to the rapid growth the country enjoyed in this period. The graphic below shows the link:

Mar 4, 2014

Russian assets lead bounce by emerging markets

LONDON, March 4 (Reuters) – Russian equities and the rouble
led gains across emerging markets on Tuesday, amid hopes that a
further escalation of the Crimean crisis could be averted.

Regional assets enjoyed across-the-board gains after
President Vladimir Putin ordered troops involved in a military
exercise in western Russia back to base. Russian stock rose 3.6
percent.

Mar 3, 2014

Russian power play risks full-scale investor exodus

LONDON (Reuters) – Russia’s power play for Ukraine’s Crimea region is putting to flight foreign stock and bond investors, who are rattled by the Kremlin’s overruling of the country’s economic interests in favor of its military ambitions.

Russia’s half-trillion dollars in central bank reserves mean its creditworthiness is not in doubt, and political risk has always been part of the game while investing in Russia.

Mar 3, 2014

Russia bears brunt of emerging markets selloff from Ukraine conflict

LONDON, March 3 (Reuters) – Fears of full-fledged
Russia-Ukraine war reverberated across emerging markets on
Monday, with the hardest hit taken by Moscow, where stocks fell
10 percent and the rouble’s plunge to record lows led to a
surprise interest rate hike.

Ukrainian assets also fell with the two dollar bonds
maturing in 2014 falling by 6-13 points on fears the
near-bankrupt country would not be able to receive external
assistance in time to avoid default.

Feb 28, 2014

Hryvnia gains on IMF hope; Brazil’s real dips

RIO DE JANEIRO/LONDON, Feb 28 (Reuters) – Ukraine’s hryvnia
jumped as much as 10 percent on Friday on hopes of a loan from
the International Monetary Fund, while the Brazilian real slid
0.5 percent after the latest budget data poured cold water on
hopes that the country would halt a deterioration in its fiscal
performance.

Russia’s rouble gained slightly but stayed near five-year
lows to the dollar on Friday, pressured by fears about
instability in neighboring Crimea.

Feb 28, 2014

Rouble slides further, hryvnia gains on IMF loan hopes

LONDON, Feb 28 (Reuters) – Russia’s rouble stayed near
five-year lows to the dollar on Friday, hit by fears about
instability in neighbouring Crimea, but Ukraine’s hryvnia
rebounded, trading 5-10 percent firmer on hopes of an IMF loan.

The rouble and other emerging currencies were also pressured
by jitters over the recent volatility in the Chinese yuan which
posted its biggest daily fall since China created its foreign
exchange market in 1994.