Morning Commentary: Eid, upcoming holiday has markets ‘calm’; Qatar on deadline for demands

By Colin Hanner

Chicago, June 26 – With just a few slated new issues expected to come to market during the week – Moscow’s Eurochem Global Investments Ltd., Cape Town’s Naspers Ltd. and Mexico City’s Pampa Energia SA among the most notable – emerging markets appeared quiet on Monday morning, a state that is expected to continue for the rest of the coming week.

“With the Eid [al-Fitr] celebrations having started over the weekend and, nearing the summer vacations in the northern hemisphere, we’re off to a relatively calm week,” a market source said. Eid al-Fitr marked the end of the Ramadan holiday, which began in late May and coincided with the drop-off in new issues pouring out of the Middle East in recent weeks.

Yet, the emerging markets arena is off to a “solid start” with “oil prices recovering from the recent lows” and U.S. Treasury yields not bending over the weekend, a market source said.

In the geopolitical arena, Qatar, whose ties were cut off by several Middle Eastern countries on June 5 following accusations of support for terrorism, has until the end of the week to adhere to a list of demands presented by Saudi Arabia, United Arab Emirates, Bahrain and Egypt, though the likelihood of those being met seems small.

Among the ultimatums from the band of Middle Eastern countries, Qatar must curb relations with Iran, cut associations with extremist organizations and shut down its Al Jazeera media network.

On Sunday, U.S. Secretary of State Rex Tillerson said that Qatar had begun looking at the demands and stressed that this be a springboard for a resolution.

“There is a basis for ongoing dialogue leading to resolution,” Tillerson said in a statement.

© 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.