Global
World's Central Banks' “Shock and Awe” Does Little to Sooth Markets as US Stocks Drop 10%
Global stock markets plummeted again on Monday and US Treasuries soared as coordinate move by world’s central banks to slash rates to zero territory and resume QE proved insufficient.
16 Mar 2020
BBH: EM Preview for the Week Ahead
Market sentiment is likely to open this week on an upswing after the Fed’s emergency rate cut and expanded QE were announced Sunday afternoon local time. Yet as we have seen time and again this past couple of weeks, added stimulus has had little lasting impact on markets as the virus numbers continue to worsen. Europe is now reporting more daily cases than China did at its peak. We remain…
16 Mar 2020
Corporate Bond Meltdown Could Expose Debt Vulnerabilities in Emerging Markets Despite Coordinated Easing
The ongoing sell-off could raise fears over a global corporate debt bubble, with EM companies particularly vulnerable as uncertainty over the extent and timeline of the COVID19 epidemic persists, IIF analysis explain in a recent research update.
16 Mar 2020
Crude Awakening: Oil Producers with Weak Balance Sheets Most Vulnerable to New Price Reality
While analysts have been hesitant to adjust their long-term expectations on oil prices amidst some of the near-term volatility seen in recent weeks, fund managers at M&G are already warning that a scenario involving average oil prices below USD40 per barrel in 2020 would see the prospects for emerging market oil producers change dramatically.
16 Mar 2020
Green Bonds Offer Marginally Lower Yields on Average – MSCI
Green bonds tend to offer 0-2bp lower yield than their conventional counterparts, according to research from MSCI. This is more pronounced in bonds issued by corporates with a higher overall ESG rating.
13 Mar 2020
CEE, ASEAN Markets Win Out on Low Oil Exposure and Net Importer Status
Oil importers and sovereigns with low exposure to oil and gas are winning out as oil prices tumble on the back of an escalating feud between Saudi Arabia and Russia, which threatens to flood global markets with cheap crude.
11 Mar 2020
Fed Injects Further USD50bn Into Repo Markets to Stem Biggest Market Drop in a Decade
The US Federal Reserve bolstered its repo taps overnight in an attempt to boost market liquidity a day after the MSCI global index lost more than 7% and government bond yields collapsed, the biggest daily drop since the financial crisis.
10 Mar 2020
Double Blow to Oil Prices as Demand Plummets, Supplies Surge amid OPEC+ Breakdown
The “unthinkable” has happened – and has caught the market unaware, says MUFG in a note.
10 Mar 2020
Data Shows Emerging Market Trade Benefitted Despite Rise in Protectionist Rhetoric – Ashmore Group
New data suggests intra-emerging market trade grew well above the long-term trend since 2016 despite intensifying global protectionist currents and trade wars.
9 Mar 2020
BBH: EM Preview for the Week Ahead
Risk-off sentiment continues to build as the coronavirus spreads and so EM is likely to remain under pressure. Oil prices are down sharply after Saudi Arabia and Russia were unable to agree on output cuts, leading the former to flood the market with low cost oil. There will be a lot of collateral damage, including EM producers, DM producers, and US shale producers.
9 Mar 2020