The increased performance of emerging markets is due, not only to a dovish tone from the US Federal Reserve, but also as a result of an increased demand for commodities from China. This has increased export revenues for many developing economies, improving their performance.
28 Apr 2016
The deterioration of the public accounts in Brazil in recent years is alarming. The primary fiscal results (before interest payments on debt) were rapidly heading toward negative territory even before the collapse of revenues due to the recession. The results have not only appeared worse because of the “creative accounting” to mask the real tragedy – they simply do not give a full picture of the…
21 Apr 2016
Markets reacted with mixed sentiment Monday to news that Brazil’s lower house voted to back the impeachment of embattled president Dilma Rousseff. Analysts and observers contend the news will do little to boost the country’s markets until the process is driven to its conclusion, and structural reforms implemented.
18 Apr 2016
Poland marked its return to the international debt markets this week, reopening 20-year euro-denominated bonds initially sold in January this year. Despite securing better pricing than it did on the initial issuance, EM investors aren’t particularly convinced there’s a bargain to be had.
14 Apr 2016
Popular support for impeachment is growing, according to the latest opinion polls. But this does not mean it will be approved by Congress. Important legal and political questions exist that make the situation uncertain.
13 Apr 2016
South Africa seems to be benefiting from an uplift in emerging markets as the stabilisation in China’s economy and the commodities sector sent the rand to four-month highs this week. Despite the positive shift, a successful Eurobond sale, and an end to some short term political strife, some investors are still concerned about long-term structural issues plaguing the country.
12 Apr 2016
Emerging markets have reacted well to dovish signals from the US Federal Reserve. The rise in commodity prices has also contributed to their performance. However future interest rate increases combined with a slowdown in the rise in commodity prices could end the rebound.
6 Apr 2016