EMERGING MARKETS-Stocks and rand rocky as Brexit storm swirls before Fed minutes

miércoles 6 de julio de 2016 06:03 GYT
 

* MSCI EM stocks index down 1.2 percent for second day
    * Rand down 1 percent, Mex peso, Turk lira, rouble down 0.5
pct
    * Poland expected to keep rates at 1.5 pct

    By Marc Jones
    LONDON, July 6 (Reuters) - Emerging market currencies and
stocks drifted lower in Europe on Wednesday, having been lashed
overnight by a renewed wave of Brexit anxiety, Chinese currency
weakness and oil price falls.
    The ugly mix pushed MSCI's benchmark EM index down
1.2 percent for a second day running and left South Africa's
rand down 1 percent and Turkey's lira, Mexico's
peso and Russia's rouble all down 0.5 percent.
    The prospect of what could be some dovish U.S. Federal
Reserve minutes later helped slow the selling in European
trading though it couldn't stem it completely.
    Polish stocks and zloty , which
have borne the brunt of the Brexit stress in emerging markets,
dropped for a fifth and fourth day respectively to take the
share losses since April to 15 percent.    
    Poland's central bank is also meeting on Wednesday. It is
widely expected to keep interest rates at 1.5 percent, but
traders will be keen to hear what the new head of the bank, Adam
Glapinski, thinks will be the impact of Brexit on the economy.
    "We still think Poland's next move could be a (interest
rate) cut," said Rabobank strategist Piotr Matys. "Probably not
this year, but early next year when we will have a better
picture on Brexit and the impact on the Polish economy."
    The general sense of global uncertainty saw the cost of
insuring emerging market countries' debt continue to creep up,
even as global bond yields continued to slide.
    A heavy drop in oil prices to back under $48 a barrel added
pressure. Russian stocks  slid in line with the
rouble after Latin American stocks, which have
had a bumper 2016 so far, dropped 2.3 percent on Tuesday.  
    Questions also lurked over China's intentions for its
currency after the yuan fell for to a fifth
consecutive session as the People's Bank of China set its daily
guidance rate at its lowest since November 2010. 
    State-run banks later sold the dollar, limiting the yuan's
fall, traders said though the moves continued to buffet
other Asian currencies.
    South Korea's won and Taiwan's dollar 
both touched one-week lows. Many Southeast Asian currencies
meanwhile were barely traded as local markets closed to
celebrate the end of the Muslim fasting month.
    "It is way too early to consider buying EM assets,"
Rabobank's Matys said of the onging selloff. "It is not over so
I maintain my very cautious view."    
     
    Emerging Markets Prices from Reuters            
 Equities                  Latest    Net Chg  % Chg  % Chg      
     
                                                     on year    
       
 Morgan Stanley               
 Emrg Mkt Indx    820.36   -11.32   -1.36   +3.30     
       
 Czech Rep            826.29    +1.86   +0.23  -13.60     
       
 Poland           1693.91   -22.04   -1.28   -8.89     
       
 Hungary           26202.60  -223.27   -0.84   +9.54     
       
 Romania           6491.68   -21.46   -0.33   -7.32     
       
 Greece              522.87    -4.29   -0.81  -17.18     
       
 Russia             917.61    -7.62   -0.82  +21.21     
       
 South Africa   44659.21  -671.72   -1.48   -2.49     
        
 Turkey          78387.70  +435.59   +0.56   +9.29     
       
 China             3017.10   +10.71   +0.36  -14.75     
       
 India           27166.87  -111.89   -0.41   +4.02     
       
            
 Currencies              Latest    Prev    Local    Local       
      
                                   close   currency currency    
       
                                           % change % change    
       
                                                    in 2016     
      
 Czech Rep      27.05     27.04   -0.03    -0.18      
     
 Poland          4.45      4.44   -0.23    -4.28      
     
 Hungary       316.33    316.34   +0.00    -0.53      
     
 Romania         4.52      4.52   +0.06    -0.03      
     
 Serbia        123.30    123.12   -0.15    -1.48      
     
 Russia            64.69     64.37   -0.50   +12.76      
     
 Kazakhstan       337.01    337.16   +0.04    +1.04      
     
 Ukraine           24.83     24.82   -0.02    -3.52      
     
 South Africa      14.85     14.75   -0.68    +4.15      
     
 Kenya            101.05    101.00   -0.05    +1.14      
     
 Israel             3.89      3.89   -0.14    -0.18      
     
 Turkey             2.94      2.93   -0.36    -0.76      
     
 China              6.69      6.68   -0.18    -2.95      
     
 India             67.52     67.42   -0.13    -1.95      
     
 Brazil             3.30      3.30   -0.01   +19.90      
     
 Mexico            18.86     18.81   -0.29    -8.98      
     
            
 Debt                 Index   Strip Spd  Chg   %Rtn   Index     
       
 Sov'gn Debt  EMBIG   407         3    .01  7 50.70 1   
        
                
 Currency percent change calculated from the daily U.S.         
  
 close at 2130 GMT.            
            


    For GRAPHIC on emerging market FX performance 2016, see link.reuters.com/jus35t
    For GRAPHIC on MSCI emerging index performance 2016, see link.reuters.com/weh36s
    For GRAPHIC on MSCI emerging Europe performance 2016, see link.reuters.com/jun28s
    For GRAPHIC on MSCI frontier index performance 2016, see link.reuters.com/zyh97s
    For CENTRAL EUROPE market report, see 
    For TURKISH market report, see 
    For RUSSIAN market report, see )

 (Editing by Raissa Kasolowsky)