* Emerging stocks down on global risk aversion
* Emerging bond spreads tighter
* Russian assets pressured on political risk, Russia plans
bond
* Forint firms vs euro as inflation supports rate hike hopes
By Seltem Iyigun
LONDON, Dec 13 (Reuters) – Emerging stocks hit their
lowest in two weeks on Tuesday as expectations of further euro
zone credit downgrades and global debt fears pushed investors
towards safer assets, while Russian assets came under pressure
on political worries.
Fitch Ratings said late on Monday that the European Union
summit had failed to provide a “comprehensive” solution to the
crisis, thus increasing short-term pressure on euro zone
sovereign ratings.
“Yesterday’s sell-off continues. There is nothing new in the
markets. It is mainly due to EU summit decisions and weak
economic data,” said Murat Toprak, emerging markets strategist
at HSBC.
European Union leaders ended Friday’s summit with a historic
agreement to draft a new treaty for deeper integration in the
euro zone, but investors remained sceptical about a long-term
solution to the debt crisis.
Continued…
