TBC Capital released its Fixed Income Regional Market Watch, which covers the range of EUR and USD state and corporate Eurobonds issued in CIS, Caucasus, Eastern Europe and extended Region (TBC Capital Fixed Income Primary Universe), a diverse and unique universe, offering ample investment opportunities. The report covers the global financial market dynamics, key drivers of emerging market debt performance, describes the latest tendencies of the Primary Universe, with closer look at Georgia and immediate neighbors.
Here are some main tendencies from global financial markets:
• The boost in international equity indices caused by the positive news regarding the vaccines in November has been halted by the recent COVID-19 developments in the UK and the subsequent mobility and economic activity restrictions worldwide. However, since our previous publication on November 30th , all major international equity indices have increased supported by the additional fiscal stimulus bill in the US as well as finalized Brexit deal among other factors.
• Emerging market currencies continued to perform well amid continued dollar weakness and stronger economy recovery. In its December 2020 outlook OECD projected the global economy to return to pre-pandemic levels by the end of 2021 (+4.25% growth in 2021 and +3.75% in 2022) with larger contribution of Asian Economies, particularly China while the recovery in the US and the EU is expected to be more protracted.
• The commodity price dynamics also reflected the appearance of the mutated COVID-19 variant. Oil prices, which have been on a rise since the beginning of November took a minor dive in the past several days.
