Forget the Fed: What’s going on in emerging markets could be more important for some bond investors
Not all eyes are trained exclusively on the Fed’s next move — bond investors are worried about a potential wave of defaults, writes the Financial Times’ markets editor Katie Martin. Market watchers could be paying too much attention to whether or not the US Federal Reserve will continue to raise interest rates (it probably will), and not enough to a potential “nightmare scenario” in emerging-market sovereign debt, where multiple countries could face not being able to pay back their bonds at once. A multiple-fronts sovereign default is a “potentially pressing issue for fund managers with concentrated exposures to emerging markets” since they could be dragged down in turn, Martin writes, adding that the corporate debt market is also showing signs of distress.
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EGX30 |
9,989 |
+0.2% (YTD: -16.4%) |
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USD (CBE) |
Buy 19.10 |
Sell 19.18 |
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USD at CIB |
Buy 19.12 |
Sell 19.18 |
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Interest rates CBE |
11.25% deposit |
12.25% lending |
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Tadawul |
12,531 |
+0.8% (YTD: +11.1%) |
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ADX |
10,246 |
-0.5% (YTD: +20.7%) |
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DFM |
3,395 |
+0.3% (YTD: +6.2%) |
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S&P 500 |
4,280 |
+1.7% (YTD: -10.2%) |
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FTSE 100 |
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Euro Stoxx 50 |
3,777 |
+0.5% (YTD: -12.1%) |
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Brent crude |
USD 98.15 |
-1.5% |
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Natural gas (Nymex) |
USD 8.77 |
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Gold |
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BTC |
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THE CLOSING BELL-
The EGX30 rose 0.2% at Thursday’s close on turnover of EGP 1.08 bn (25.8% above the 90-day average). Foreign investors were net sellers. The index is down 16.4% YTD.
In the green: Rameda Pharma (+5.0%), GB Auto (+3.2%) and Telecom Egypt (+2.4%).
In the red: Alexandria Containers (-1.9%), Heliopolis Housing (-0.9%) and CIB (-0.8%).