* Hungary eyes likely freeze in EU aid
* Emerging stocks rise 1 pct on positive sentiment
* Hungarian stocks up 0.9 pct, inflation at 5.9 pct
By Philip Baillie
LONDON, March 13 (Reuters) – Emerging debt spreads
narrowed to their tightest in seven months and stocks rose 1
percent on Tuesday as European Central Bank liquidity continued
to draw investors into emerging markets, while investors in
Hungary eyed a likely freezing of EU aid.
Emerging sovereign debt spreads narrowed by 3 basis
points to 314 bps, their lowest level since August 2011.
MSCI’s benchmark emerging stock index climbed
almost 1 percent with gains led by Russia, India and China in
early trading, buoyed further by data showing German analyst and
investor sentiment rose significantly more than expected to its
highest level since June 2010.
Analysts say the effects of the European Central Bank’s
long-term refinancing operation (LTRO) are still filtering their
way through the system and helping emerging markets.
“The underlying story that has been supporting the markets
is the liquidity from the LTRO, a very important proportion of
the market is still buying into that theme,” said Imran Ahmad,
emerging markets strategist at RBS.
Continued…
