Emerging markets under pressure againJanuary 29, 2014 Posted by: Pete Karabatos
Emerging stock and currency markets are under pressure again this morning. The Turkish central bank unexpectedly more than doubled benchmark repo rates from 4.50% to 10.00% overnight in a bid to stop the slide of the Lira precipitated by a slowdown in China and a reduction in U.S. monetary stimulus. The Lira traded roughly 4% stronger during the Asian trading day only to reverse course in London trading and ultimately weaken. The South Africa Reserve Bank also unexpectedly raised rates, though less dramatically, lifting the benchmark from 5.00% to 5.50%.
• U.K. home prices rose for the 13th straight month to the highest levels since 2008.
• The MXN is the worst performing Latin American currency today on speculation that the Fed will reduce its monthly bond purchase program today by an additional $10 billion per month.
• The Russian Ruble fell to a record low today on continued turmoil in emerging markets.
• Eurozone money supply grew by 1.0% in December, less than the 1.7% projected.
• U.S. treasury yields are lower as investors seek a safe haven.
01/29 USD: FOMC rate Decision
01/31 EUR: Unemployment (Jan)
01/31 USD: Personal Income and Spending (Dec)
02/03 GBP: Manufacturing PMI (Jan.)
02/03 USD: ISM Prices Paid (Jan.)
02/04 EUR: Producer Price Index (Dec.)
02/04 USD: Factory Orders (Dec.)
02/05 GBP: Purchasing Managers’ Index (Jan.)
02/05 EUR: Retail Sales (Dec.)
2 Year 0.35
5 Year 1.51
10 Year 2.70
30 Year 3.65Read More