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Volatile sentiment amidst solid credit fundamentals
Weekly investor research
20 May 2019
While markets fret over trade wars and other problems emanating from developed countries, EM is experiencing the strongest credit fundamentals in many years. In country specific news, Ukraine looks to settle local bonds in Clearstream, Venezuela’s PDVSA pays the 2020 coupon, Brazil slows as the pension reform drags onut, inflation moderates in Argentina as Cristina Kirchner announces her candidature for Vice President, exit polls points to a Modi victory in India, Ecuador’s Moreno and Philippines’ Duterte both emerged stronger from elections. Russian growth was weak in Q1 2019. Argentina and Saudi Arabia join the MSCI EM. The global backdrop remains negative as Trump’s economic nationalism enters a new phase.