New hopes for faster US economic recovery pushed US indices to the new record highs on Wednesday – S&P 500 advanced by 1.4% to 3,380.35 level meaning that the index gained 50% from its March lows; Nasdaq appreciated by 2.1%. The yield on 10Y USTs rose 0.8 bps to 0.66% supported by the consumer prices report which shows inflation rising a more rapid pace than expected last month. On the Fed side, FRB Boston President Eric Rosengren warned that the economic rebound could be slowing as it needs more fiscal and monetary support for upcoming months.
Asian markets showing gains this morning – Hang Seng and CSI 300 appreciated by 0.2%, Topix rose by 1.1%.
Ruble weakened by 0.8% on Wednesday to 73.65 lvl vs USD after the strong date from US. MinFin held just a single auction, however decided not to fulfil any orders due to the absence of acceptable price levels (for the first time since April 22nd. Russian Eurobonds were sold off, long end bonds lost 0.75-1 pt in price.
On SSA front we saw buyers across the board. Clients were looking for Nigerian corporates as well as belly and long end Ngeria and Angola sovs. NGERIA 30 gained more that 1.5 pts while ANGOL 25 appreciated by just 30 bps.
After a sell-off earlier this week on a rising hopes of a new US economy stimulus package, gold climbed 1% to 1936.5 per ounce yesterday. Oil also showed gains, Brent added 2.1%, WTI advanced by 2.5%.