Loading ...Italy’s bonds rallied after Fitch Ratings kept the country’s credit rating unchanged, easing fears that it will be downgraded to junk anytime soon
Emerging-market currencies and shares advanced despite China’s state-run Xinhua news agency later publishing a commentary saying talks will be harder at the final stage. Treasuries and core European bonds slipped, while Italy’s securities advanced and the euro strengthened. Following Trump’s tweet, developing-nation equities headed for the longest rally in nine months. South Africa’s rand led currency gains, with its biggest advance this month, and Russia’s ruble was set to post its longest winning streak since April 2015. “Given this string of positive news, it is hard to see an inflection in the positive EM momentum today,” Guillaume Tresca, a Paris-based strategist at Credit Agricole SA, wrote in a report. “This could help to support EM sentiment, which has been fragile,” with emerging-market portfolio inflows decelerating in the past two weeks.
The official delay from the U.S. may give fresh impetus to extend a global rally in equities that was being tested amid an uncertain future on global trade and forecasts for global economic growth to ebb. Meanwhile, it is unlikely that the market euphoria will fizzle any time soon: Fed Chairman Jerome Powell, whose dovish capitulation has also helped to boost markets, will testify on U.S. monetary policy on Tuesday and Wednesday.