LONDON, Sept 25 Emerging stocks and bonds
steadied on Tuesday, and the forint fell ahead of a Hungarian
rate decision that has markets on edge after a cut that
surprised most economists last month.
Sixteen of 21 analysts polled by Reuters expect the bank to
keep its 6.75 percent base rate - the European Union's highest -
on hold, though five predict a cut and dealers say the market
has priced in a cut.
The situation was the same ahead of the decision to cut
rates last month at a time when the government's unorthodox
policy course and brinkmanship with the IMF has raised nerves
Emerging markets in general have risen this month following
the announcement of a third round of U.S. quantitative easing
and a European Central Bank bond-buying programme which eased
fears over some of the world's major economies.
But the shine has come off high-yielding markets in recent
days on resurfacing worries about global growth and euro zone
countries Spain and Greece.
Emerging stocks were unchanged on the day but have
fallen 1.5 percent from 4-1/2 month highs set earlier this
Emerging sovereign debt spreads were steady at 300
basis points over U.S. Treasuries, while emerging European
currencies were steady to softer.
The forint fell nearly half a percent in early