Market Watch

GABON (Capital Markets in Africa) – Gabon is starting investor meetings Monday for a planned Eurobond sale that will test demand for hard-currency debt from one of the lowest-rated issuers in the region. The sale comes amid record debt sales by emerging-market borrowers this year as a lull in trade tensions and a rally in U.S. Treasuries spur demand for higher-yielding assets. Average yields on Eurobonds from sub-Saharan Africa are 2.5 percentage points higher than the emerging-market average, promising potentially juicy…

LAGOS (Capital Markets in Africa) – Commodity investors will focus this week on Washington’s top trade policy issue since Donald Trump won the presidency: reshaping relations with China. Tariff Man is to host a hard-won signing ceremony with Beijing on a first-phase deal, and markets want all details and ask what’s next. Earnings season kicks off in earnest with numbers midweek from aluminum maker Alcoa Corp., followed by Schlumberger Ltd. on Friday. The oilfield services giant…

NEW YORK (Capital Markets in Africa) – It is the time of year when investors look at their books and see which losing securities they can shed to trim their tax bills—but they may have little to work with this year. Investors can lower taxes on their capital gains—which face ordinary income rates if held for a year or less—by selling at a loss certain shares that have dropped in value. Depending on the extent…

JOHANNESBURG (Capital Markets in Africa) – Demand at South Africa’s weekly government bond auction surged as investors stocked up on some of the most attractive yields in emerging markets before supply dries up into the year-end. Investors bid for almost four times the amount of securities on offer, making it the strongest sale since the government increased the auction amount to 4.53 billion rand ($306 million) on August 6, according to Bloomberg calculations based on central-bank data. S&P…

LAGOS (Capital Markets in Africa) – The decline in equity volatility from its early August highs looks overdone given the number of risk events that lie ahead, according to market participants. Federal Reserve meeting minutes, Fed Chair Jerome Powell’s speech at Jackson Hole and a slew of economic data from purchasing managers indexes to jobless claims are among those seen to have the potential to re-ignite price swings. The Fed is seen as the most…