EU volatility spiked back to levels of last Monday intraday before settling down but didn’t give up gains of last few days.
As I talk to seasoned EM veterans who have been focused on this asset class for 15-20 years through a myriad of political, economic and global macro cycles I am increasingly hearing more and more pessimism on whether investors are finally losing their interest in EM. Hard to believe that people who sat in remote locations around the world in 1998 after the Asian crisis moved into the Russian crisis and LTCM blowing up, are NOW in need of trip to the psychiatrist to review their calling in life.
Despite all the doom and gloom in Emerging Markets and the trends on performance relative to G3 markets EM-Asia has outperformed
I wanted to give you update this Saturday afternoon on the Ukraine and Russia moves. What is really going on how it and what does it mean.
As we hit the 18th consecutive week of outflows from EM equities the question begs – when is enough enough?
YOKU released 4Q numbers that showed profitability for the first time in the companies history according to non US GAAP (+0.04c) and were almost breakeven (-0.02c) according to US GAAP.
As one of my Russian brokers said to me when I checked on market sentiment (Russian market), “…it’s been a long day of tape bombs from the Ukrainians, the Russians, the Europeans, the Americans, the IMF, the North Koreans, and former President of Ukraine Victor Yanukovych (I’m waiting for Sean Penn).
Be clear, the economic impact of Ukraine crisis is not a fundamental driver for the Ruble. Ukraine sentiment has been responsible for the 75-100bps of weakness but ultimately the Russian economy and CBR policy are what is driving the weakening trend.
Suddenly its time for markets to get ready to digest another important employment number as the debate rages on whether the stock market has gotten ahead of the recovery.