The Markets

27 Sep 2022 | Policy announcements are coming thick and fast in the UK at the moment and have been greeted with the most significant sell-off in UK assets in decades. Is this a case of markets overreacting or have the UK public finances been put on an unsustainable footing? Will the Bank of England react to the fall in sterling or are markets setting themselves up to be disappointed? We will set out our…

LAGOS (Capital Markets in Africa) – LME copper cash prices averaged $9,293.7 per ton in the year- to-August 24, 2022 period, constituting an increase of 1.4% from an average of $9,164 a ton in the same period of 2021. Supply disruptions and expectations of robust global demand drove the rise in prices. Also, copper prices declined to $8,076 per ton on August 24, 2022 from an all-time high of $11,299.5 a ton on October 18,…

LONDON (Capital Markets in Africa) – ‘’Caution is the name of the game on equity markets with expectations that aggressive policies to tame roaring inflation will continue despite fresh signs that the US economy is slowing. The dramatic fall in the S&P Global composite PMI in August highlighted how demand was falling for the US services sector in particular as supply chain snarl ups, inflationary pressures and interest rate hikes took their toll. The ultimate…

NEW YORK (S&P Global Ratings) Aug. 17, 2022–Emerging markets (EMs) have been experiencing significant net portfolio outflows over the past few months, according to S&P Global Ratings (see attached report). Tightening financing conditions, expectations of economic slowdown in developed economies, as well as geopolitics are all contributing to portfolio outflows from EMs, particularly from China. External environment for EMs is currently worsening, and we expect pressures on EM assets to remain. A more polarized political…

CAIRO (Capital Markets in Africa) – Egypt became a prime destination for hot money by tethering its currency and boasting the world’s highest interest rates when adjusted for inflation. But five months after Egypt devalued the pound, investors say the central bank would need to let it weaken further before they return, after pulling some $20 billion from the local debt market since the start of this year. The central bank has denied that a…