Investors digest Fed rate decision; oil prices under pressure; Yingde Gases faces conflict

By Christine Van Dusen

Atlanta, Dec. 14 – Emerging markets investors spent most of Wednesday awaiting the Federal Open Market Committee’s rate decision, which came in as expected: the benchmark rate was raised to a range between 0.50% and 0.75%.

Federal Reserve Chair Janet Yellen also indicated that the FOMC could lift short-term rates next year by another 0.75 percentage point because the economic outlook is improving.

Meanwhile, oil prices were under some pressure as market-watchers speculated that producers in the United States could increase production.

“Rigs count growth in the U.S. will be a bearish factor for price growth,” according to a report from Schildershoven Finance BV.

Also on Wednesday, Hong Kong-based Yingde Gases Group Co. Ltd. received some attention amid a corporate conflict between shareholders over who should maintain control of the company.

Two directors issued an open letter to shareholders, proposing changes to the board and to solicit offers for shares, Schildershoven said in a report.

“Yingde Gases’ corporate conflict between current and new shareholders may also hurt its business process, which will negatively impact the company’s credit quality,” the report said. “We recommend investors take profit in company’s bonds to wait out the conflict.”

Looking to Ukraine, bonds so far this week have been mostly quiet, said Svitlana Rusakova of Dragon Capital (Cyprus) Ltd.

The sovereign curve has been mostly unchanged while corporates have been better bid, she said.

© 2015 Prospect News.
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