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Emerging Markets: What has Changed
marctomarket.com / by Dr Win Thin and Ilan Solot / June 11, 2015
1. Turkey looks to have a coalition government for the first time since
2002.
2. Brazil’s central bank is reducing its rollover of FX swaps.
3. Hungary recorded the first positive y/y CPI reading in 8 months.
4. MSCI deferred its decision on including China A-shares in its indices.
5. Mexican President Pena Nieto would not commit to reappointing central bank Governor Carstens.
6. Poland will see a cabinet reshuffle as three ministers and the parliamentary speaker resigned.
7. Russia central bank adjusted the amounts of its daily FX purchases in response to currency moves.
8. Ukraine is edging closer to a disorderly default.
9. Venezuela withdrew $1.5bn worth of its IMF’s Special Drawing Rights (SDR’s).
Over the last week, Colombia (+4.7%), Czech Republic (+3.4), and Russia (+3.4%) have outperformed in the EM equity space as measured by MSCI, while Indonesia (-4.2%), Turkey (-2.7%), and Hong Kong (-2.4%) have underperformed. To put this in better context, MSCI EM fell -0.3% over the past week while MSCI DM rose 0.5%.
In the EM local currency bond space, Russia (10-year yield -29 bp), Mexico (-10 bp), and the Philippines (-4 bp) have outperformed over the last week, while Ukraine (10-year yield +116 bp), Hungary (+34 bp), and Indonesia (+17 bp) have underperformed. To put this in better context, the 10-year UST yield fell -4 bp over the past week.
In the EM FX space, COP (+3.4% vs. USD), RUB (+2.0%), and MXN (+1.9%) have outperformed over the last week, while TRY (-2.1% vs. USD), PHP (-1.2%), and MYR (-1.1%) have underperformed.
The post Emerging Markets: What has Changed appeared first on Silver For The People.
Source: http://silveristhenew.com/2015/06/12/emerging-markets-what-has-changed-17/
