* Rising Spanish debt insurance costs a worry
* Hungarian assets gain a reprieve
* Czech stocks hit 3-mth low, Russian stocks 2-1/2 mth low
* Argentine debt insurance costs high
By Carolyn Cohn
LONDON, April 17 (Reuters) – Argentina’s debt insurance
costs rose after the country moved to seize control of leading
energy company YPF on Monday, and worries about Spain’s debt
burden contributed to keeping most risky emerging markets under
pressure on Tuesday.
However, the assets of indebted Hungary gained a slight
reprieve from recent lows as investors watched talks underway
between the government, central bank, IMF, EU and European
Central Bank that are critical to any financial aid deal.
Madrid called the move on YPF, controlled by
Spanish company Repsol, a hostile decision and vowed
“clear and strong” measures, while the EU’s executive European
Commission warned that an expropriation would send a very
negative signal to investors.
Argentina’s five-year credit default swaps were quoted at
950 basis points, according to Markit, after closing at the
year’s highs of 951 bps on Monday.
Continued…
