LONDON, June 26 (Reuters) - Egyptian stocks extended gains
on Tuesday to hit three-week highs on hopes the new government
can revive a struggling economy while Russian assets rose after
four days of losses in line with a recovery in oil prices.
Overall, emerging stocks traded little changed
ahead of a summit of European Union leaders that weighed on
sentiment along with a mass downgrade of Spanish banks by
ratings agency Moody's and a bailout request from Cyprus
.
The Cairo stock index rose 3 percent adding to a 7
percent jump on Monday, its biggest daily gain in nine years
after Mohamed Mursi was named Egypt's first freely elected
president, boosting hopes for a violence-free transition from
army rule and market-friendly economic policies.
Egyptian 5-year credit default swaps eased another 3 bps to
695 basis points, according to Markit, down almost 30 bps from
3-1/2 year highs touched late last week.
In emerging Europe, Russian stocks rose 1.5 percent,
off the previous session's three-week lows, while the rouble
firmed 0.25 percent against the dollar. But its markets
will remain under pressure as oil prices have slumped to $92 a
barrel, well under levels at which the budget was calculated.
The Hungarian forint rose 0.4 percent against the euro
ahead of a central bank meeting that is expected to
leave interest rates unchanged. Rate-setting meetings later in
the week in Romania and the Czech Republic are also not expected
to yield changes to interest rates
.
On debt markets, Bahrain was looking to issue a 10-year
dollar bond, giving an initial spread guidance of 462.5 bps over
midswaps.
(reporting by Sujata Rao; Editing by John Stonestreet)
© Thomson Reuters 2012 All rights reserved
