Capital inflows into the asset class hit US$25bn last month. “I am not entirely surprised as this “global deflation fear”, the driving theme for global markets is quite supportive for global emerging markets,” said Benoit Anne, head of EM strategy at SG.
However, Anne reckons that appetite may dampen with the December Fed meeting approaching “when there is a good chance that the Fed changes its communication, which may trigger more nervousness.”
That is all to come. Today is likely to be quiet as the US begins its Thanksgiving preparations though there one deal relevant to Gulf investors – Pakistan’s five-year sukuk, which will price later today.
Final guidance is at 6.75-6.875% (with the sukuk due to price in range). The book is around US$1.7bn, excluding lead orders.
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