Morning Commentary: EM ends week on calm note; Ukraine, Hungary lower; Ivory Coast vote eyed

By Christine Van Dusen

Atlanta, Dec. 16 – Trading of emerging markets assets was quiet on Friday morning after the Federal Open Market Committee’s somewhat hawkish comments and the largely expected decision to raise rates earlier in the week.

“With the major events of 2016 now behind us, we are heading into the weekend on a calmer note,” a London-based analyst said. “U.S. rates have stabilized following the initial sell-off triggered by an apparently hawkish-turned Fed. It’s an otherwise rather dull day in terms of macro data as well.”

Looking to Ukraine, bonds moved a touch lower as they headed into the end of the week, said Svitlana Rusakova of Dragon Capital (Cyprus) Ltd.

“Corporates remained the bright spot,” she said.

From Hungary, the sovereign’s 5 3/8% notes due 2024 traded at 108.5 bid, 109 offered after being spotted at 109.5 bid, 110.03 offered earlier in the week, a London-based trader said.

Some investors were keeping an eye on Ivory Coast, where parliamentary elections will be held on Sunday.

“The public vote follows a constitutional referendum in end-October,” the analyst said. “While the referendum was approved by voters, turnout was only 42%, as most opposition parties had boycotted the vote.”

The opposition party is expected to return to the polls for the new vote.

“Tensions are therefore running high,” he said.

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