Issuance from Sharjah; economic data eyed; Brazil votes to impeach; Turkey underperforms

By Christine Van Dusen

Atlanta, Sept. 1 – The Emirate of Sharjah sold notes on Thursday as investors digested recent economic data – including Wednesday’s release of slightly better-than-expected private employment data from the United States – and awaited Friday’s jobs report.

“The key event will undoubtedly be tomorrow’s nonfarm payrolls for August,” a London-based analyst said.

Looking to Brazil, the Senate voted to impeach President Dilma Rousseff and remove her from office.

“For now, investors attention shifts from the impeachment saga to [her replacement, former Vice President Michel Temer’s] ability to implement fiscal adjustment that is crucial for the Brazilian financial health,” according to a report from Schildershoven Finance BV. “His inability to implement unpopular structural reforms may trigger a substantial risk-off in the Latin American capital market.”

From Turkey, the curve continued to underperform, widening 5 basis points to 7 bps into the European close, a trader said.

“The Street hit the curve down early in the day, with the 2026s and 2045s hit,” he said. “Client activity was low but started the session with better sellers for choice. The spread-widening was Street-driven but this has brought some buyers into the close from the United States.”

Local investors also “joined the bid” after profit-taking for the past few weeks, he said.

Banks and corporates from Turkey saw two-way activity, but valuations are tight versus the sovereign curve, he said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.