{"id":14601,"date":"2012-09-13T16:17:23","date_gmt":"2012-09-13T14:17:23","guid":{"rendered":"http:\/\/www.myza.co.za\/09\/emerging-markets-pause-after-rally-ahead-of-fed-meeting\/"},"modified":"2012-09-13T16:17:23","modified_gmt":"2012-09-13T14:17:23","slug":"emerging-markets-pause-after-rally-ahead-of-fed-meeting","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/emerging-markets-pause-after-rally-ahead-of-fed-meeting\/","title":{"rendered":"EMERGING MARKETS-Pause after rally ahead of Fed meeting"},"content":{"rendered":"

\t\t<\/span><\/p>\n

LONDON, Sept 13<\/span> (Reuters) – Emerging equities eased off
\nfour-month highs on Thursday, pausing after the past week’s 4
\npercent rally ahead of a U.S. Federal Reserve meeting that is
\nexpected to unveil a third round of bond purchases to support
\nthe economy.<\/span><\/p>\n

<\/span><\/p>\n

The central bank will release its decision at 1630 GMT, with
\nChairman Ben Bernanke to hold a news conference two hours later.
\nA Reuters poll of investors showed the odds of a third round of
\nquantitative easing, or QE3, rose to 65 percent.<\/p>\n

<\/span><\/p>\n

MSCI’s emerging equities slipped 0.2 percent after
\nfive sessions of gains that have been fuelled by an improving
\npicture in the euro zone.<\/p>\n

<\/span><\/p>\n

“We saw a bit of profit-taking and I expect a wait-and-see
\ngame (before the Fed), with some temptation on part of investors
\nto take advantage of the prior rally to square positions, but
\nit’s not very indicative of sentiment,” said Benoit Anne, head
\nof emerging markets strategy at Societe Generale.<\/p>\n

<\/span><\/p>\n

Emerging markets were also pressured by a 0.8 percent drop
\nin Shanghai where banks were dragged down by reports
\nthey would be forced to step up lending for stimulus projects<\/p>\n

<\/span><\/p>\n

Central European currencies were in negative territory
\nversus the euro, with the Czech crown inching further off recent
\none-year highs and the Polish zloty easing from two-week peaks.
\nTheir Asian peers also weakened ahead of the Fed decision.<\/p>\n

<\/span><\/p>\n

In Russia, the rouble and stocks eased from four-month highs
\nahead of a central bank meeting which according to some analysts
\ncould deliver an interest rate rise.<\/p>\n

<\/span><\/p>\n

Slowing growth and rising inflation are creating a dilemma
\nfor the central bank which is trying to establish its
\ninflation-targeting credentials. Inflation is about to breach
\nthe official target of 5-6 percent for the whole of 2012.<\/p>\n

<\/span><\/p>\n

“We think that, on balance, the (central bank) will
\nprioritise building credibility ahead of the transition to a
\npure inflation targeting regime and expect two 25 basis points
\nhikes of the overnight auction rate this year with the first one
\ndue already today,” SEB analysts said in a note.<\/p>\n

<\/span><\/p>\n

Emerging sovereign dollar bond yield spreads were at 293 bps
\nabove Treasuries, the tightest since early-July 2011.<\/p>\n

<\/span><\/p>\n

(Reporting by Sujata Rao)<\/p>\n

<\/span><\/p>\n

\n

\t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"

LONDON, Sept 13 (Reuters) – Emerging equities eased off four-month highs on Thursday, pausing after the past week’s 4 percent rally ahead of a U.S. Federal Reserve meeting that is expected to unveil a third round of bond purchases to support the economy. The central bank will release its decision at 1630 GMT, with Chairman […]<\/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-14601","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\/14601","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=14601"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/14601\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=14601"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=14601"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=14601"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}