Oil prices, Brazil holiday, snow in New York keep EM quiet; most names dip; ADB plans deal

By Christine Van Dusen

Atlanta, Jan. 25 – The recent rally of emerging markets assets paused on a quiet Monday – due to the holiday in Brazil and the snow in New York – after oil prices, which climbed late last week, moved lower again.

Oil prices were down about 3% on the news that Saudi Arabia was maintaining investment in energy projects, according to a report from Barclays Capital.

“That ‘get me in’ mentality we saw in the market Thursday afternoon and Friday has been replaced by a refocus on the usual oil, China and liquidity questions,” a trader said Monday morning. “Momentum is lost, and so is the desire to add risk for now.”

Against this backdrop, Ivory Coast-based African Development Bank announced plans for a benchmark-sized issue of sterling-denominated notes due in December of 2018.

And Nigeria is planning to a host a non-deal roadshow and could later issue about $1 billion of bonds, a market source said.

In trading, bonds from Peru tried to keep the gains made last week, a trader said.

“The market is trying to hold levels from Friday,” he said.

Most names from Latin America moved lower, a New York-based trader said.

“During the morning and early afternoon, prices were stable,” he said. “We saw a material weakening of the market in the afternoon, when most of the damage was done.”

© 2015 Prospect News.
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