Record Saudi bond sale

Emerging market were buoyed as the Kingdom of Saudi Arabia debuted a record bond sale, lifting assets in Gulf nations.

The Kingdom announced a $17.5 billion bond offering on Wednesday, the largest ever as Saudi shares increased the most in six months.

The MSCI Emerging Markets Index gained 0.4 per cent on the announcement.

The sale reinvigorated emerging markets at a crucial time when pessimism runs rampant due to the US presidential race and rising borrowing costs.

“Investor sentiment is rather peppy, helped by expectations that Trump’s chances have eased and the successful absorption of the Saudi bond deal. Emerging markets are likely to recover some of the losses incurred in the first two weeks of Octoberl,” said Koon Chow, strategist at Union Bancaire Privee.

EmergingMarketBanking

Read more at Bloomberg.