Oil volatility to headline movement in emerging markets; Capex wrapping up roadshow

By Colin Hanner

Chicago, May 8 – In what could have been a catastrophic turn for emerging markets on Monday, the results of the French election followed what polls had clearly shown running up to the final vote, with Emmanuel Macron winning resolutely over Marine Le Pen on Sunday.

Yet, with markets relying on those polls ahead of the election, not much had changed Monday, and activity was on the weaker side for most of the day.

“With markets having already priced in much of a win and challenges still ahead” – a series of legislative elections in June – “actual gains have however been limited,” a market source said.

“It will be a relatively calm week, [versus] the previous one, despite what looks like a busy calendar,” the source said.

The volatility of crude oil prices has attacked markets on many fronts last week and will be one of the central tenets of the week ahead, market sources said.

“Concerns remain on the higher production from shale notably in the U.S.,” a market source said.

Meanwhile, Argentina’s Capex SA, which announced last week it would issue new notes in connection with the start of a tender offer of any and all of its outstanding $200 million 10% notes due 2018, is on the road until Tuesday, a market source, and expects them to price mid-week at the earliest.

© 2015 Prospect News.
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