LIVE MARKETS Greener pastures for ESG bonds – Reuters

LIVE MARKETS Greener pastures for ESG bonds ReutersESG Debt Buyers Swallow Short-Term Losses to Gain Ethical Kudos BloombergGRAPHIC-Global issuance of sustainable bonds hits record in 2021 NasdaqSupply of corporate debt labeled ‘green’ bonds from big U.S. companies soars 73% in 2021 MarketWatchPROJECTS INTERVIEW: Sustainability-linked debt market to bridge climate funding gap ZAWYALIVE MARKETS Greener pastures for ESG bonds ReutersESG Debt Buyers Swallow Short-Term Losses to Gain Ethical Kudos BloombergGRAPHIC-Global issuance of sustainable bonds hits record in 2021 NasdaqSupply of corporate debt labeled ‘green’ bonds from big U.S. companies soars 73% in 2021 MarketWatchPROJECTS INTERVIEW: Sustainability-linked debt market to bridge climate funding gap ZAWYALIVE MARKETS Greener pastures for ESG bonds ReutersESG Debt Buyers Swallow Short-Term Losses to Gain Ethical Kudos BloombergGRAPHIC-Global issuance of sustainable bonds hits record in 2021 NasdaqSupply of corporate debt labeled ‘green’ bonds from big U.S. companies soars 73% in 2021 MarketWatchPROJECTS INTERVIEW: Sustainability-linked debt market to bridge climate funding gap ZAWYA

Dec 20 – Welcome, to the home of real-time market coverage brought to you by Reuters journalists. You can share your thoughts with us at markets.research@thomsonreuters.comGREENER PASTURES FOR ESG BONDS (1234 EST/1734 GMT)Investment-grade environmental, social, and governance (ESG) bonds are faring better in the primary market for corporate debt compared to other bonds, according to a recent BofA Global Research report.Analysts estimated that over the last four years, ESG bonds on average were priced 2.4 basis points tighter, when comparing new issue concessions for ESG bonds to the rest of the market. According to the report, “The growing cost savings associated with issuing ESG debt should continue supporting rapid market growth next year.” This was after issuance rose 73% year over year to $84 billion in 2021. The report stated that the demand could be helped by more U.S. credit investors adhering strongly to ESG guidelines. This figure currently stands at 5%. (Karen Pierog) (Karen Pierog LOOKING for shelter in a market storm (1153 EST/1653 GMT).) Nicholas Colas, co-founder of DataTrek Research, noted a preference to U.S. large-cap stocks after Thanksgiving. The S&P 500 (.SPXX) had fallen 1.7% since Nov. 24, but it has outperformed other areas like small caps. The Russell 2000 (.RUT), as well as emerging markets stocks, is down 6.8% over the same period. However, Colas noted a defensive preference among investors with healthcare gaining 4% in this period followed by a 3.2% increase in utilities (.SPLRCU), consumer staples (.SPLRCS), and a 1.9% rise in real estate (.SPLRCR). Consumer discretionary (.SPLRCU), on the other hand, has fallen 6.9%, while energy (.SPNY), 3.2% in utilities (.SPLRCU), and consumer staples (.SPLRCS) were down 3.8% and 3.4% respectively. This would make it easier for yield-sensitive groups such as utilities, staples, real estate, and realty (.SPLRCR) to gain 1.9%. Colas says that healthcare is DataTrek’s preferred defensive sector. However, he also said that he still likes financials, energy, and industrials in cyclicals. He asked if the Fed would raise rates quickly if the virus were to “become an economic systemic threat to the US economy in 2022 (as is the bear case)”. (Sin?ad Carew) (Sin?ad carew STOCKBUYBACKS MAY KEEP PERFECTIONS BRIEF, even as volatility increases (1055 EST/1555 GMT). Companies have been increasing their repurchases of own shares despite slowing retail stock purchases and institutions reducing their equity holdings. (Sin?ad Carew) Stock market corrections are likely to remain shallow, but market volatility is expected increase, according to Brian Reynolds, chief market strategist at Reynolds Strategy.NET. Companies have been increasing their stock buybacks even as retail stock purchases slow down and institutions reduce equity holdings. “The strong, debt-fueled corporate share repurchases should be strong enough to keep stock markets from crashing, but they won’t prevent panicky selling as Wall Street desks that execute corporate buybacks prefer to purchase shares as they recover, Reynolds said. However, Reynolds also said that the market will remain volatile due to the bearishness of institutional investors who have turned into sellers in the third quarter. Reynolds stated that a bull market will be marked by short, but frightening corrections. (Karen Brettell U.S.STOCKS REEL in EARLY Trade (0953 EST/1453 GMT). Major U.S. market indexes are lower Monday due to concerns about the impact on the global economy of tighter COVID-19 restrictions. Turkish markets are also under pressure after President Tayyip Erdogan’s defense for low interest rates on Sunday. The Euro STOXX 600 (.STOXX), is down around 1.4%. It was at its lowest level of the day, 2.6%. With this, more economically sensitive S&P 500 (.SPX) sectors are taking the biggest hits, while, not surprisingly, defensive bond-proxy groups are off the least.Here is an early U.S. trading snapshot:earlytrade12202021(Terence Gabriel)*****DOW INDUSTRIALS: SICK AGAIN (0900 EST/1400 GMT)U.S. equity index futures are tumbling on Monday, dragged down by fears over tighter restrictions on the global economy, as a result of the Omicron variant.Given action in CBT e-mini Dow futures , the Dow Jones Industrial Average (.DJI) is poised to slide more than 400 points when regular-session trading kicks off.This relapse is occurring after the blue-chip average failed to register a close above the 76.4%/78.6% Fibonacci retracement zone of its November-December slide at 35,961.87/36,018.16, keeping alive the potential that its December bounce was counter-trend read more :Dow12202021With early weakness Monday, the DJI can once again threaten its rising 200-day moving average (DMA), which ended Friday around 34,605.Key support resides at a broken log-scale resistance line from 1929, which now comes in around 34,100, and the Dow’s Dec. 1 low, which is at 34,006.98.Closing below this support zone can suggest the potential for a much greater decline, given that trend line has subsequently contained Dow weakness since it was first overwhelmed in March.A reversal back over the 50-DMA, however, which ended Friday around 35,545, can see the Dow make another go at the Fibonacci barrier. Read more (Terence Gabriel FOR MONDAY’S LIVE MARKETS’ POSTS PRIOR to 0900 EST/1400 GMT CLICK HERE: Terence Gabriel is a Reuters Market Analyst. These views are his own.

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