UNITED STATES

The possibility of impeachment of Donald Trump turned the US stock market lower. Democrats pushed the opening of an investigation related to the president’s phone call with Ukrainian leader Zelenskiy as they blamed Trump for his attempt to urge Zelenskiy to probe Joe Biden. However, Trump promised to release a transcript of the phone call today. S&P dropped by 0.84%, Nasdaq declined by 1.5%. On the fixed income side, 10y USTs fell 6bps to 1.65.

UNITED KINGDOM

The GBP spiked yesterday morning to 1.2484 after Boris Johnson was called upon to resign after Britain’s Supreme Court ruled that he had broken the law by suspending Parliament. Nevertheless, Johnson said he remains optimistic on a Brexit deal. 10Y UKTs lost 4 bps in yield and closed at 0.5253%.

ASIA

Asian markets are slightly lower this morning on the back of impeachment news as well as Trump`s comments regarding China at the United Nations as if they created an unfair playing field. Hang Seng is down by 1%, CSI 300 shed 0.5%. On the FI front, Asian IG spreads were about 3-4bbps wider.

MIDDLE EAST

In MENA region, the multi tranche of ADGB bonds came weak yesterday morning but strengthened during the day as fundamentally the sovereign trades wide for its rating and as US treasuries also traded higher. Today we will see a multi-tranche of Bahrain new issue.

RUSSIA

In Russia, the Minfin holds its last auctions in 3Q19 today with unlimited offerings, probably because they did not reach quarterly borrowing plan; RFLB 25 and RFLB 22 FRN would be offered today. Ruble slightly depreciated yesterday to 64.00 against the USD yesterday and continued falling today (currently quoted at 64.13). Russian Eurobonds traded almost flat on Tuesday, Russia 29 remained unchanged at higher 107 handle, Russian 47 slightly weakened to low 120 area. Within the corporates, LUKOIL 4 3/4 11/02/26 outperformed; it gained half a point and closed at higher 109 handle.

TURKEY

Turkish markets rallied this week on the back of a new trade package offered to Turkey by the US as well as F-35 jets. The lira advanced to 5.7 from 5.74 while the equity market and bonds jumped to the new highs. Turkey 47 added a point this week, currently trading at mid 85 area while Turkey 29 reached mid 105 level (highest level since end of July).

LATAM

Brazil Central bank believes that economy will gain speed in the coming quarters but more stimulus is needed to sustain the recovery. Brazil has cut its rate by 0.5% in each of its past two meetings and signaled that more easing is on the way. In the minutes of the last meeting that were published yesterday, policy makers mentioned that slowing of international growth and inflation might be favorable to EM as fixed income EM trades at a spread to safe havens. Brazil govies slightly weakened on Tuesday, Brazil 47 lost around 30 bps while corporate bonds traded mixed.