* U.S. Treasury yields jump to two-week high
* Russia's rouble gains 0.4% ahead of OFZ auction
* Most central European currencies soften against euro
By Shashank Nayar
April 28 (Reuters) - A jump in U.S. Treasury yields and a firmer dollar kept emerging market currencies in check and stymied developing market stocks on Wednesday as investors awaited a U.S. Federal Reserve meeting.
MSCI's indexes of emerging currencies .MIEM00000CUS and stocks .MSCIEF slipped 0.1% ahead of the Fed meeting. Markets are hoping for confirmation that policymakers have no appetite to tinker with support for the economy following a recent run of good U.S. data. expect more of the same from Fed at the upcoming meeting, framing the story of no rate hike until 2024 and that Fed will be patient of inflation overshoots and be behind the curve in terms of tightening policy," analysts at Maybank wrote in a note to clients.
Meanwhile, U.S. President Joe Biden will also address Congress later in the day and is likely to underscore his administration's plans for mass infrastructure and stimulus spending. improving U.S. economy and expectations for big fiscal spending are causing more investors to question the levels of quantitative easing through bond purchases and how much inflation policymakers would tolerate.
Russia's rouble RUB= strengthened 0.4% to trade below 75 to the dollar with steady crude oil futures providing support. O/R The gains came ahead of an OFZ treasury bond auction, which will be keenly watched after U.S. imposed sanctions that will affect foreign buying of Russian debt. return to a neutral monetary policy with its latest increase in interest rates will not hamper economic recovery, Central Bank First Deputy Governor Ksenia Yudayeva said. added that inflationary expectations in Russia are "very high" and keep rising, explaining the rationale behind the central bank's decision to hike the benchmark rate to 5% last week.
For GRAPHIC on emerging market FX performance in 2021, see http://tmsnrt.rs/2egbfVh For GRAPHIC on MSCI emerging index performance in 2021, see https://tmsnrt.rs/2OusNdX
For TOP NEWS across emerging markets CENTRAL EUROPE market report, see CEE/
For TURKISH market report, see .IS
For RUSSIAN market report, see RU/RUB
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Russia rouble and CDS
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.