Tread carefully with Emerging Markets

Tread carefully with Emerging Markets By Filipe R Costa One year ago the FED was discussing whether it should hike its key rate and thus reverse a policy trend that had lasted for a decade. By then, investors were anxiously awaiting such a move, and even expected a rate hike to be the first of many more to come (albeit gradually) over the course of the following years. The preparations for that particular hike were substantial, as the FED clearly feared the market reaction after so many years of near-zero interest rates. And they were right: the reaction to the change in policy was negative and investors dragged down almost every asset class. Take oil, for example. The price of crude oil halved between October 2015 and February 2016. In the same period the S&P 500 declined 12% and Emerging Markets, as measured by the MSCI EM index, were battered down by 20%. The tantrum created by the first hike has prevented the FED from moving on to the next hike. A hesitant FED turned a rate hike into such a big deal that everybody is taking a seat for the show… Click Here To Read The Full Story The Master Investor Market Report The FTSE 100 closed the day at 6,958.09, a decrease of 59.55 points. The FTSE 250 fell 132.87 points to finish at 17,668.98. The FTSE All Share dropped 31.38 points to finish at 3,774.38. The FTSE AIM All Share ended the day at 825.17. Shares in mining giant Antofagasta (ANTO) fell by 17.50p to 523p after production figures for the third quarter disappointed investors. The company said that its full-year copper output would be towards the lower end of expectations. Average cash costs have been cut relative to the prior year and the management are looking at cutting back on certain capital expenditure projects. Check out our brand-new October issue! Click HERE to read. Financial services firm CYBG (CYBG), owner of the Clydesdale & Yorkshire Bank, has confirmed press speculation that it is considering buying 300 Williams and Glyn branded branches from Royal Bank of Scotland. RBS is required to sell the business by the end of the year as a condition of its 2008 bailout, but several potential buyers have been put off by the complexity of decoupling accounts from the rest of its operations. CYBG shares closed the day at 271.50p, down by 0.60p. Distribution and outsourcing outfit Bunzl (BNZL) said that performance in the second half of 2016 so far has been in line with the expectations laid  out in the company's interim statement. Underlying revenues for the third quarter rose by 7%, fueled largely by acquisitions and additional trading days relative to the same period of the prior year. The falling value of the pound boosted these results further in terms of statutory performance. The shares dropped by 28p to 2,197p. Tomorrow's news today Stobart (STOB) will publish its interim results. Quote of the day "If you keep thinking about what you want to do or what you hope will happen, you don't do it, and it won't happen." - Desiderius Erasmus Latest Stories Sirius Minerals: Tehnicals target 55p after Rinehart intervention By Zak Mir It has certainly been a long journey for fans of the would-be Yorkshire Potash miner Sirius Minerals. As most of us are aware, it is usually the case that for mining companies the key is less about the digging, and more about the funding… Click Here To Read The Full Story MP Evans: Another bid seems to be the proverbial no-brainer By Evil Knievil Perhaps ten years ago I first considered the Far Eastern plantations covering palm oil – MP Evans (LON:MPE) in Malaysia and REA (LON:RE.) in Indonesia… Click Here To Read The Full Story ITM Power: Return To 35p resistance expected By Zak Mir ITM Power had been a slow burner until now, on both a technical and fundamental basis. But it would appear that the hydrogen refuelling stations company is set to take off in a positive way… Click Here To Read The Full Story The signs of a Great Unravelling are appearing By Jim Mellon Another month of the phoney war in markets; range bound almost everywhere, except in Japan – which is performing well – and ahead of every other major market… Click Here To Read The Full Story Vietnam is strikingly attractive to investors By Evil Knievil The prospect of a new US President, a US interest rate rise and Brexit mean that defensive stocks could become increasingly popular. That's why I'm optimistic about National Grid's future prospects… Click Here To Read The Full Story Join the movement on social media: Copyright 2016 Master Investor Ltd, All rights reserved. You are receiving this email because you opted in at our website. If a Daily Bulletin is too frequent, why not opt in to our once weekly mailing list for a round up of the week's news straight to your inbox. Once Weekly Round-Up Our mailing address is: Suite 88, 22 Notting Hill Gate, London W11 3JE Master Investor is a trading name of Master Investor Limited. Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd does not accept any liability for any losses suffered by any user as a result of any such decision.

This email was sent to educationspeculator.davinci@blogger.com why did I get this?    unsubscribe from this list    update subscription preferences Master Investor Ltd · Suite 88 · 22 Notting Hill Gate · London, London W11 3JE · United Kingdom