EM trades well ahead of holiday; Turkey widens; Ukraine, Russia, Noble eyed; YPF eyes deal

By Christine Van Dusen

Atlanta, Dec. 23 – Emerging markets assets were on solid footing on Wednesday as global economic conditions improved and liquidity thinned ahead of the Christmas holiday.

“Risk markets continue to trade well as signs of China’s economy show some stability and United States data continues to show signs of resilience overall,” a London-based trader said. “Commodities also look to have found a temporary floor, but I guess not many are buying into that story just yet.”

“Some paper coming out in Russia,” he said.

The market was watching the sovereign’s bonds to see the impact of the United States’ new sanctions against corporates.

Looking to Turkey, sovereign cash – which has traded well for several sessions – widened about 6 basis points on Wednesday morning “on concerns that the central bank’s independence seems compromised,” he said.

From Ukraine, the sovereign has weakened somewhat so far this week, with minor selling, said Fyodor Bagnenko, a fixed-income trader with Dragon Capital.

But “the market overall was virtually dormant, with most people on holidays,” he said.

Hong Kong-based Noble Group Ltd.’s eurobonds should get a boost from selling its stake in its agriculture unit for at least $750 million to China’s Cofco Corp., Schildershoven said.

Argentina’s Yacimientos Petroliferos Fiscales SA received approval from its board of directors to issue up to $769 million of bonds as part of the company’s $8 billion global medium-term note program.

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