Emerging Markets


FTSE Russell to include China bonds in flagship index from October

FTSE Russell to include China bonds in flagship index from October

(ATF) FTSE Russell said on Monday it would include Chinese sovereign bonds in its flagship index from October 31, as it hinted at later possible inclusion of India in an emerging market benchmark.Chinese government bonds will be added to the FTSE World Government Bond Index (WGBI) over three years from …

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Higher oil prices dance to the tune of rising inflation

Higher oil prices dance to the tune of rising inflation

(ATF) Global economic recovery hopes and production cuts have helped oil prices rise to their highest level in more than a year. For emerging market (EM) sovereign energy producers and exporters, this should help in two distinct ways: first, by lowering fiscal funding needs; and, second, by improving their current …

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Chinese, Indian bonds offer harbour for investors fleeing Treasuries storm

Chinese, Indian bonds offer harbour for investors fleeing Treasuries storm

(ATF) The violent sell-off in US Treasuries has boosted the lure of higher yielding assets such as Chinese and Indian bonds which have historically had low correlation and are offering greater stability.Foreign investors have bought a net $41.5 billion of Chinese bonds since the start of the year, already about …

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Strong investment case brewing for emerging markets in 2021

Strong investment case brewing for emerging markets in 2021

(ATF) What's good for the global equity markets is even better for emerging markets (EMs). And as the EMs recovered smartly in the last three months of 2020, on par with both US equities and the broader developed markets (DMs), 2021 could well be the year for EMs as an …

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Markets this week: December PMIs, FOMC minutes

Markets this week: December PMIs, FOMC minutes 

(ATF) Economic eventsInvestors will return to the trading floor in the New Year trying to square market optimism with economic reality amid the spread of a new, highly infectious Covid-19 variant as the vaccine rollout is conflicted with logistics and other hurdles in many countries with the efficacy also unproven.Wall …

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Markets cautiously optimistic as year end approaches

Markets cautiously optimistic as year end approaches

(ATF) Hong Kong: Asian markets stayed weak on Tuesday as investors sought clarity on the impact of the new variant of the coronavirus, although analysts have started cautiously upgrading their economic assessments for the current year and for 2021.“Initial analysis indicates that the variant may spread more readily between people. …

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EM local bonds appeal with attractive yields and cheap currencies

EM local bonds appeal with attractive yields and cheap currencies

(ATF) With investors struggling to find much‑needed yield for their portfolios, we believe a strong opportunity remains within emerging market local bonds. The yields on offer from a number of EM local bond markets are among the highest currently available in fixed income, while EM currencies are attractively valued and …

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Rising currencies spark fear of post-Covid currency war

Rising currencies spark fear of post-Covid currency war

Financial markets’ euphoric reaction to the recent Covid-19 vaccine breakthroughs and US election results is pushing some currencies up so fast that rumblings have begun about a potential new FX war.Almost a decade after Brazil’s finance minister likened Western central bank money-printing to economic warfare, some of the conditions that …

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Markets consolidate gains awaiting Biden presidency

Markets consolidate gains awaiting Biden presidency

(ATF) Hong Kong: Financial markets came off highs as gridlock from a Biden presidency and a Republican Senate was fully priced in, even as the US Presidential election count continued.The dollar steadied after weakening to two-year lows and US Treasuries were unchanged after the two-day rally as fiscal stresses eased …

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EM bonds set to ride the Blue Wave

EM bonds set to ride the Blue Wave

(ATF) On the eve of the US Presidential election, Emerging Market bonds play an important role in an investment portfolio. They are leveraged to Chinese and global growth, offer some carry, and have not yet reached pre-pandemic spread levels despite the rally. Emerging Market bonds will be less affected if …

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