EM debt spreads mostly edge wider, but market quiet as stocks slide, oil prices improve

By Rebecca Melvin

New York, Nov. 19 – Spreads for emerging markets debt were mostly edging wider on Monday although the market was quiet as stocks fell, rates came in slightly and the oil patch continued to recoup after touching a low mark for the year last week.

“Spreads overall are typically struggling,” a London-based trader said.” Stocks are lower and oil is not doing much.”

Oil prices ended the day continuing to recoup after benchmark crude had its steepest plummet in more than three years on Nov. 13. The drop culminated a multi-week slide that hurt some of the smaller exporters like Ecuador.

But on Monday, West Texas Intermediate crude oil for December delivery rose 0.5% to $56.76 a barrel on the New York Mercantile Exchange.

Stocks sold off with the tech titan Apple Inc. joining other sector names in bear market territory, or a level that is 20% below its all-time stock market high.

Currencies were mostly little changed on the day with the dollar flat. The Argentine peso and Turkish lira as well as the Mexican peso and South African rand remained tighter Monday, but still close to recent weak level.

Also having a quieting effect is the U.S. Thanksgiving holiday, which will close financial markets in the United States on Thursday and bonds markets on Friday as well.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.