* Most emerging currencies retreat from multi-mth highs
* Turkish bond auctions in focus; yields fall
* Latvia in 5-year dollar bond sale
By Sujata Rao
LONDON, Feb 14 (Reuters) – A Moody’s warning for
AAA-rated Britain, France and Austria forced a slight pullback
in emerging markets on Tuesday with equities down 0.1 percent
and currencies easing off multi-month highs.
Moody’s also downgraded the credit rating of six countries,
including Italy, Spain and Portugal, citing growing risks from
Europe’s debt crisis and its action put London’s prized top
credit rating in jeopardy for the first time.
But markets clawed back some losses after the ZEW survey
showed German investor sentiment rose more than expected in
February to its highest since April 2011 while
Italy and Spain saw solid demand at debt sales.
By 1212 GMT, emerging stocks were down 0.1 percent, well
off the six month highs hit last week but higher than session
lows touched earlier in the day.
The index was weighed down by losses on big Asian bourses —
Shanghai, Taipei and Seoul — which all slipped as investors
took profits off the recent rally. India however bucked the
fall, rising 0.4 percent as a fall in inflation to 26-month lows
fanned hopes of a cut in interest rates.
Continued…
