12 March 2014 by HCM
The first warning signs regarding emerging markets and China first appeared back in January. Worries around growth in China resurfaced a week ago, when surprisingly weak economic data were released with exports falling 18% while the market was expecting a 7% increase. Investors were quick to associate this weakness with potential decline in appetite for commodities in general and steal products in particular. All the names in the sector have had a torrid last few sessions. Their risk premia have substantially increased, in meaningful volumes. Not surprisingly, in the European investment grade universe, AALLN (Anglo American Plc) and GLEINT (Glencore Xstrata Plc) stand out as the worst performers over the last week.