The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Emerging-market assets declined as concern grew that threats to global trade and growth are proliferating. Mozambique’s international bond tumbled after the nation said it won’t make an interest payment on January 18.
The MSCI Emerging Markets Index dropped the most in more than three weeks and a gauge of currencies slipped for the first time in three days. Investors turned bearish after a report that the UK’s exit from the European Union would also involving leaving the single market. US President-Elect Donald Trump said other members would also quit the bloc.
All but two of the 24 emerging-market currencies tracked by Bloomberg slid, led by Turkey’s lira, the world’s worst performer this year. Saudi Arabia’s Tadawul All Share Index was the biggest drag among major world gauges.
Mozambique’ Eurobonds fell after the nation’s ministry of economy and finance said it won’t pay an almost $60 million coupon due this week on a $726.5 million note maturing in 2023.
Currencies
MSCI Emerging-Market Currency Index retreated 0.3 percent as of 9:50 a.m. in New York. The lira weakened 1.6 percent; South Africa’s rand lost 0.8 percent. Latin American currencies declined, led by Mexico’s peso 0.8 percent slide. Brazil’s real lost 0.2 percent and the Colombian peso dropped 0.2 percent. South Korea’s won dropped 0.6 percent. Prosecutors are seeking a warrant to arrest Samsung Group’s Jay Y. Lee for allegations including bribery and embezzlement.
Stocks
MSCI’s gauge of developing-nation stocks fell 0.7 percent. Saudi Arabia’s Tadawul All Share Index retreated 1.6 percent. Brazil’s Ibovespa rose 0.2 percent; miner Vale SA contributed the most to the gauge’s advance. Egypt’s EGX 30 Index dropped 0.2 percent; an Egyptian court ruled on Monday that the nation has sovereignty over two Red Sea islands that the government had agreed to transfer to Saudi Arabia, one of its biggest financial backers.
Bonds
Mozambique 2023 Eurobond fell 2.9 cents to 55.11 cents on the dollar, with the yield rising 141 basis points to 25.5 percent.