2000-04-07 Week in positive mood
Daily Brady Bond Trading Commentary
Friday April 7, 2000
The Emerging Markets finished the week in a positive mood having been reassured that the US economy remains buoyant and that inflation is not yet a worrysome ingredient in the expansion.
The equity markets in Argentina, Brazil and Mexico all recorded gains and bond markets slowly moved higher although volume was light. Analysts will be looking closely at Peru on Sunday as President Fujimori and Alejandro Toledo contest the presidential election. Investors appeared optimistic with either candidate and took both equity and bond markets higher.
The election polls indicate a dead heat. Overall, we remain bullish so long as the US economy remains strong. The correlation between the US markets and the emerging markets is a close one and, as the last week has demonstrated, any volatility in the US markets will be reflected south of the border.
Contributed by
Credit Lyonnais Securities (USA) Inc.
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