China’s turmoil hurts EM; Lat-Am widens, but some names firm; Hungary, KEB Hana on roadshows

By Christine Van Dusen

Atlanta, Jan. 7 – Emerging markets assets continued their sell-off on Thursday as worries about China and its devalued currency sent global shares plummeting and led to a suspension of Chinese markets.

“The markets once more are feeling the pinch of a Chinese devaluation and macro concerns,” a London-based strategist said.

That led to a case of “some pretty big jitters,” a London-based trader said, and inspired a sell-off of risky assets “with no return of liquidity yet.”

The global turmoil also impacted oil, with Brent and crude prices falling, the strategist said.

In trading from Latin America, the tone was cautious, but there was “no panic” on Thursday morning, a New York-based trader said.

“Low bids, but offers aren’t aggressive either, yet,” he said. “We have been ignoring the macro situation because there has been solid, if unspectacular, buying since late in 2015 and in the first three days of the year. How we will fare if we see substantial selling is another story.”

At the end of the session, many Latin American spreads moved wider and cash prices moved lower, another trader said.

In deal-related news, Hungary will set out on Jan. 11 for a roadshow to market a possible issue of renminbi-denominated notes, a market source said.

And PT Bank KEB Hana Indonesia is planning a roadshow, beginning Jan. 13, for a possible issue of notes, a market source said.

© 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.