Europe Has Different Attitude About Coal From Emerging Markets Like China

Companies, banks, and investment funds, primarily European, have been coming out in recent weeks with announcements they will halt investments in coal, a new front in efforts to reduce use of the highly polluting fuel that faces a battle against the hunger for power in emerging markets.  The latest move came Friday, when Norway's parliament voted to force its sovereign wealth fund — the world's biggest — to pull out of firms that are heavily involved with coal.  Earlier in the week, French energy-group Total announced it would withdraw from its coal activities, notably in South Africa where it is involved in the production and sale of the fuel that is important for electricity in numerous countries around the world.

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Emerging Market Stocks Rise as Energy Producers, Banks Lead Gain

Emerging-market stocks headed for the biggest four-day gain in 15 months, led by energy and financial companies, as investors bet oil prices are stabilizing and China will step up measures to support economic growth. Russia’s ruble rose for a second day.  VTB Bank jumped to the highest price since July 2012 in Moscow after saying it’s financing a $283 million copper-mill project in Armenia. Shares in Dubai and Nigeria rose for a third day. Cnooc Ltd. and PetroChina Co. climbed more than 4 percent, while Bank of China Ltd. led mainland shares traded in Hong Kong to the largest gain in two weeks. The ruble gained 6.9 percent versus the dollar.

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Resurgent Emerging Markets See Biggest Inflows

A shift by investors' back into emerging market assets gathered pace over the last week, with China and Russia seeing some of the biggest demand as EM inflows reached their highest rate in over a year.  Data from Boston-based fund tracker EPFR, which monitors funds with $23 trillion in assets, showed combined inflows to EM debt and equity funds climbed to $4.7 billion in the week to April 9.  Banks and investors have started buying back into the emerging market story in recent weeks, noting that sector valuations now are cheap enough to compensate for economic weakness and political risks.

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-Igor P. Purlantov