The Markets

LAGOS (Capital Markets in Africa) – Global bond markets have suffered unprecedented losses since peaking last year, as central banks including the Federal Reserve look to tighten policy to combat surging inflation. The Bloomberg Global Aggregate Index, a benchmark for government and corporate debt total returns, has fallen 11% from a high in January 2021. That’s the biggest decline from a peak in data stretching back to 1990, surpassing a 10.8% drawdown during the financial…

JOHANNESBURG (Capital Markets in Africa) – Currency speculators are placing their bets on the South African rand at a record pace, even as Russia’s assault on Ukraine sends investors fleeing from most riskier assets. Hedge funds turned net long on the rand to the tune of 13,402 contracts as of March 15, swinging from a net short position of 239 contracts the previous week. The change was the biggest since the Commodity Futures Trading Commission…

LAGOS (Capital Markets in Africa) – Bitcoin’s energy use has long been a hot-button issue. Now some developers say the solution could lie in a more energy-efficient form of computer processing that, perhaps appropriately, uses lasers. When we consider Bitcoin’s energy use, really, the discussion should focus on emissions. Industry participants have worked toward improving transparency in that category the past couple of years. If we look even further back, Hal Finney – who received…

LONDON (Capital Markets in Africa) – A $18.9 million coupon payment on a bond issued by Evraz PLChas been blocked due to the Russian steelmaker’s ties to sanctioned billionaire Roman Abramovich. Evraz moved the cash a week ago, but the company’s correspondent bank, Societe Generale New York, halted its transfer to paying agent BNY Mellon for compliance reasons, the steel company said in a regulatory filing on Monday.  The block “has its roots in the…

LAGOS (Capital Markets in Africa) – Bitcoin, in what’s become its motto of late, is starting the week on a tepid note. But crypto fans are looking at a technical signal that’s potentially pointing to a new breakout.The supply of Bitcoin in private wallets across exchanges has reached a three-year low, according to data compiled by Glassnode. Though it’s not necessarily the primary price catalyst right now, there’s logic to the idea that might mean…

NEW YORK (Capital Markets in Africa)- The war in Ukraine has dimmed prospects for aggressive Federal Reserve rate hikes and that should bolster American equities even as markets endure a bout of volatility in the coming weeks.  That’s the view of JPMorgan Chase & Co. strategists led by Marko Kolanovic, who have repeatedly urged investors to buy the dip during the global equity rout this year. In a fresh note released Monday, the top-ranked strategist says the direct impact on…