Investors await Brexit vote; Lat-Am activity ‘muted’ but tone firm; Jiangsu Hanrui eyes notes

By Christine Van Dusen

Atlanta, June 21 – Emerging markets investors were focused on Tuesday on the upcoming Brexit vote and awaited the United Kingdom’s decision about staying in or exiting the European Union. But unlike some other sessions, this wait-and-see stance did not spawn a negative environment for the asset class.

“Investors are rather anticipating the UK referendum on its EU membership that will take place on Thursday,” a London-based strategist said. “This week has seen markets being buoyed by hopes that the ‘remain’ camp will eventually succeed. Nonetheless, the outcome remains highly uncertain.”

In trading from Latin America, volumes and inquiry were “fairly muted” on Tuesday but better than the previous session, a New York-based trader said.

“And the breadth of inquiry is also much deeper than the last three to four sessions,” he said. “Tone remains firm across most high-grade and high-yield credits, and most clients’ flows are pretty evenly balanced.”

Mexico-based Cemex SAB de CV, however, continued to see better selling, he said.

Banks from Mexico were firmer, he said, with “decent volumes going through, and balanced inquiry,” while high-grade corporates from Mexico were “lagging the slight move higher we’ve seen overall, after Brexit fears were somewhat alleviated yesterday.”

In deal-related news, China’s Jiangsu Hanrui Investment Holding Co. Ltd. is on a roadshow for a dollar-denominated 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.