{"id":12132,"date":"2012-07-05T12:14:33","date_gmt":"2012-07-05T10:14:33","guid":{"rendered":"http:\/\/www.myza.co.za\/07\/emerging-markets-stocks-dip-ahead-of-ecb-leu-hits-5-wk-low\/"},"modified":"2012-07-05T12:14:33","modified_gmt":"2012-07-05T10:14:33","slug":"emerging-markets-stocks-dip-ahead-of-ecb-leu-hits-5-wk-low","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/emerging-markets-stocks-dip-ahead-of-ecb-leu-hits-5-wk-low\/","title":{"rendered":"EMERGING MARKETS-Stocks dip ahead of ECB, leu hits 5-wk low"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p><span class=\"articleLocation\">LONDON, July 5<\/span> (Reuters) &#8211; Emerging stocks dipped on<br \/>\nThursday after rallying 6 percent in the past week ahead of an<br \/>\nexpected cut in euro zone interest rates, while political<br \/>\ninstability hit the Romanian leu.<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>Emerging markets have joined in a broad rally in<br \/>\nanticipation of stimulus-providing monetary easing from major<br \/>\ncentral banks, with greater optimism about a resolution to the<br \/>\neuro zone debt crisis also offering strong support.<\/p>\n<p><span><\/span><\/p>\n<p>Markets softened ahead of the European Central Bank policy<br \/>\ndecision at 1145 GMT, expected to result in a cut in rates by 25<br \/>\nbasis points to a record low 0.75 percent.<\/p>\n<p><span><\/span><\/p>\n<p>The Bank of England is also expected to launch a third round<br \/>\nof quantitative easing on Thursday, with at least 50 billion<br \/>\npounds of gilt buying.<\/p>\n<p><span><\/span><\/p>\n<p>Benchmark emerging equities eased from six-week<br \/>\nhighs set in the previous session, with Chinese shares<br \/>\ndown 1.2 percent. Sovereign debt spreads edged out after<br \/>\nhitting their narrowest in six weeks on Wednesday, while<br \/>\nemerging European currencies mostly fell.<\/p>\n<p><span><\/span><\/p>\n<p>The Romanian leu hit a five-week low against the<br \/>\neuro, approaching record lows set in May, on political concern<br \/>\nas Romania&#8217;s leftist government seeks to suspend and impeach the<br \/>\ncountry&#8217;s centre-right president.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;These developments have a negative side effect on Romanian<br \/>\neconomic equilibrium, as well as exacerbating the risks of more<br \/>\nsubstantial capital outflows amidst the EMU turmoil,&#8221; said<br \/>\nanalysts at Societe Generale in a client note.<\/p>\n<p><span><\/span><\/p>\n<p>The cost of insuring Romania&#8217;s debt against default rose 14<br \/>\nbasis points to 413 bps in the five-year credit default swap<br \/>\nmarket, according to Markit.<\/p>\n<p><span><\/span><\/p>\n<p>The zloty edged off recent two-month highs after<br \/>\nthe central bank left rates unchanged on Wednesday, as expected.<\/p>\n<p><span><\/span><\/p>\n<p>(Reporting by Carolyn Cohn; Editing by Catherine Evans)<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>LONDON, July 5 (Reuters) &#8211; Emerging stocks dipped on Thursday after rallying 6 percent in the past week ahead of an expected cut in euro zone interest rates, while political instability hit the Romanian leu. Emerging markets have joined in a broad rally in anticipation of stimulus-providing monetary easing from major central banks, with greater [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-12132","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12132","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=12132"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/12132\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=12132"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=12132"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=12132"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}