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20.12.2016 INTELLIGENCE™
20.12.2016 | Analytics

The attack on Russian ambassador in Turkey and a probable terrorist attack in Berlin may trigger a risk off mood among global investors. The correction should not be too deep and too long.

• We do not expect any reaction in the Russian market to the EU sanctions extension. 

Changes in Chinese banking regulation may hurt the demand for local sovereign and corporate bonds which may trigger the market correction.

• We consider that Fortescue Metals Eurobond due in 2022 is a good trading opportunity given the issue is rated BBB- by two rating agencies and provides a 4% p.a. till a call date in March 2018, which is one of the best yield for investment grade bonds.

Higher expectations for the Japan economic growth in 2017 may limit further stimulus from the BOJ, which may be negatively assessed by investors.

Brazilian economic team decreased its growth forecasts for 2017.

Expectations are growing that the Chilean Central Bank will implement monetary easing to support growth and inflation.

We do not expect Mexico’s Central Bank to increase key rate as current level is sufficient to stabilize MXN.

RISK BUBBLE.

238-2016

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