EMERGING MARKETS-Emerging stocks set for fifth week of gains

LONDON, Jan 12 (Reuters) – Emerging market stocks surged almost one percent on Friday and were set for a fifth straight week of gains after a mid-week spike in U.S. Treasury yields abated and oil prices held near 3-year highs.

MSCI’s emerging equity index rose 0.8 percent back to recent 6-1/2 year highs after a strong showing in Asia where Hong Kong hit new 10-year highs and India surged to a new record.

Mainland Chinese stocks posted their 11th straight day of gains, shrugging off softer trade data.

In emerging Europe, Russian stocks hovered just off one-year peaks as Brent crude prices retreated from the $70-per-barrel mark .

Emerging currencies also broadly firmed against the dollar which pulled back against a basket of currencies, including Brazil’s real which shrugged off an S&P downgrade to the already junk rating.

The Turkish lira rose half a percent to the dollar while the Polish and Hungarian currencies surged almost one percent . The rouble and rand rose around 0.2 percent, the latter pressured by the ruling ANC party’s decision this week not to launch proceedings against President Jacob Zuma .

JPMorgan’s ELMI Plus currency index closed Thursday near three-year highs hit last week, reversing mid-week falls.

Investors mostly remain persuaded the market has further to rise, with analysts at ING noting Thursday’s soft U.S. inflation data and expectations of robust retail sales.

“Such a mix of strong growth and subdued inflation should bode well for emerging currencies, particularly in the context of the somewhat cooling fears about the bond market sell-off,” ING Bank analysts said.

They were referring to the rise in U.S Treasury yields, while Bund yields are at 5-1/2-month highs. That briefly knocked local emerging debt markets.

“The U.S. Federal Reserve is acting according to plans, it’s not as if it is behind the curve on inflation and being forced to hike quickly in panic mode. That would be bad for EM but we are not in this situation,” said Raphael Marechal, portfolio manager at Nikko Asset Management.

“Real yields in emerging markets are quite juicy compared to the U.S.” he added, referring to inflation-adjusted bond yields.

For GRAPHIC on emerging market FX performance 2017, see tmsnrt.rs/2e7eoml For GRAPHIC on MSCI emerging index performance 2017, see tmsnrt.rs/2dZbdP5

For CENTRAL EUROPE market report, see

For TURKISH market report, see

For RUSSIAN market report, see) (reporting by Sujata Rao)

The Wider Image App

Explore the world through captivating visual stories by award-winning Reuters photojournalists. This immersive app for iPad reimagines news photography to bring images and information to life.

The Wider Image is a winner of 25 awards for innovation, photojournalism and design and an iTunes Editors Choice.

The Wider Image is also available as a responsive site at widerimage.reuters.com

Features include:

  • Discover What Matters: Uncover stories, people and places you never knew existed. New visual reports added daily to the wealth of work.
  • Lean in and Learn: Get more context on every story – interact with image sequences, read expanded facts, swipe between the before and after, hear words and sounds.
  • Meet the Storytellers: Get to know the photographers with behind the scenes images and insights. Follow your favorites to see new work as it is added.
  • Show and Tell: Enjoy stunning photojournalism on your television for all to see via Apple TV. Share stories with confidence they look great on any device.
EMERGING MARKETS-Emerging stocks set for fifth week of gains
EMERGING MARKETS-Emerging stocks set for fifth week of gains

Global stocks recover as bond jitters retreat, euro hits 3-year high

LONDON World stocks scaled fresh peaks on Friday while the euro hit a three-year high and Bund yields rose as progress on forming a German government gave fresh impetus to a bond market sell-off triggered by signs the ECB may accelerate an end to its stimulus.

House passes NSA spying bill after Trump tweets cause confusion

EMERGING MARKETS-Emerging stocks set for fifth week of gains

The U.S. House of Representatives on Thursday passed a bill to renew the National Security Agency’s warrantless internet surveillance program, overcoming objections from privacy advocates and confusion prompted by morning tweets from President Donald Trump that initially questioned the spying tool.  Full Article 

Source: Reuters

News

BRIEF-Moody's says Euro Area's economic recovery supports stable 2018 outlook

January 15, 2018 mmayha 0

Jan 15 (Reuters) – Moody‘s: * MOODY‘S SAYS EURO AREA‘S ECONOMIC RECOVERY SUPPORTS STABLE 2018 OUTLOOK, DESPITE PATCHY STRUCTURAL REFORM PROGRESS‍​ * MOODY‘S SAYS FORECASTS THAT EURO AREA GROWTH WILL AVERAGE 2.0 PERCENT IN 2018, […]

News

RPT-Germany to include yuan in FX reserves – c.banker

January 15, 2018 mmayha 0

(Repeats to more subscribers) HONG KONG, Jan 15 (Reuters) – Germany’s central bank has decided to include China’s currency, the yuan, in its foreign exchange reserves, Bundesbank board member Andreas Dombret said in Hong Kong […]

News

Singapore files more charges against Shell oil theft suspects

January 15, 2018 mmayha 0

SINGAPORE (Reuters) – A Singapore court on Monday filed additional charges against nine men accused in a large-scale oil theft at Shell’s biggest refinery, the latest development in an extensive investigation in the city-state. The […]

Be the first to comment

Leave a Reply