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Periodically at Emerging Money we examine spread relationships. EEM/SPY is the big picture one, but intra market-making country spread calls are often highly effective for reasons that are both rooted in fundamentals and also technical and market timing factors.
This week, ratings agency Moody’s upgraded their sovereign credit rating for the Turkish economy (TUR, quote) from Ba2 to Ba1, one notch below the level of investment grade.
In an interview with CNBC this week, Finance Minister Mehmet Sinsek indicated the Turkish economy would be able to navigate current economic difficulties with a so-called ‘soft-landing.’
Standard & Poor’s downgraded the sovereign credit rating of Turkey from positive to stable on Tuesday, indicating that the country is unlikely to receive either an upgrade or a downgrade within the next 12 months.
Investors looking for exposure to Turkey’s fast-growing market have limited opportunities in the United States.
A worrisome article on the Turkish economy in this week’s Economist forced investors in Turkey (TUR, quote) to re-evaluate their bullish outlook on the country’s economy. However, in light of data released Wednesday, it appears the Economist’s fears may have been overstated.
Other emerging countries may be printing money to stimulate their economies and weaken their currencies, but Turkey is a winner right now for refusing to race to let its exchange rate race to the bottom.
Turkey released its FY 2011 GDP numbers this week, reporting GDP growth of 8.5%, the fastest in all of Europe.
Welcome to the last emerging markets heat map of the first quarter. Global markets have started off to the upside as traders square their positions ahead of the month end and hunt bargains after the last few days’ selling. Nearly all the big boxes are in the green with PBR 0.83%, FMX 1.29% and MPEL 2.26% displaying notable strength on the Emerging Stock index.
