EMERGING MARKETS-Russia's debt insurance costs rise, stocks fall; emerging stocks hit 12-day low

viernes 1 de agosto de 2014 06:54 GYT
 

By Spriha Srivastava

Aug 1 (Reuters) - Russia's debt insurance costs rose to their highest since early May and the country's stocks fell on Friday after the European Union announced the details of its sanctions on Moscow.

Broader emerging stocks hit 12-day lows, with further weakness coming after the U.S. Federal Reserve sounded more hawkish on interest rates earlier this week, taking the shine off higher-yielding assets.

Russia's top lender Sberbank dropped 2.4 percent down, while shares in Russia's second-largest bank VTB fell 4 percent, hit by EU sanctions restricting their access to foreign capital over Moscow's role in Ukraine.

Index compiler MSCI said it was consulting investors over deleting VTB from the MSCI Russia index.

Moscow's dollar-denominated RTS index fell nearly 1.7 percent, and its rouble-traded MICEX dropped 1.3 percent.

Russia's 5-year credit default swaps rose 6 basis points to 243 bps, their highest since early May, according to Markit.

The rouble was stable against the dollar, however.

"We will still have to see over time how big the impact will be," said Thu Lan Nguyen, an emerging markets analyst at Commerzbank, adding that "there was a little bit of relief that the sanctions were not even tougher - the rouble is holding its ground quite well."   Continuación...