The Markets

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…

LAGOS (Capital Markets in Africa) – Billions of dollars in cash is at risk of being trapped, stock funds have plunged, and capital controls are choking off money flows. Russia has all the hallmarks of an uninvestable market for global investors. Russia-focused equity funds have tumbled 23% on average in the past week, according to data compiled by Bloomberg. Bonds have plummeted as default risks intensified, and trading the ruble has become a Herculean task with brokers stepping back…

LAGOS (Capital Markets in Africa) – There are few things scarier for investors than a bear market — unless you’re involved in crypto, in which case a winter is worse.  The chilling term refers to a sharp slump, followed by a drop-off in trading and months of market doldrums — a phenomenon that memorably befell the crypto market in 2018. Bitcoin’s price plunged by more than 80% to as low as $3,100 from the end…

LAGOS (Capital Markets in Africa) – Nigeria’s government will propose that lawmakers approve shelving plans to eliminate expensive gasoline subsidies by 18 months. The administration of President Muhammadu Buhari is seeking to revise a law passed in August that provided for the full deregulation of fuel prices within six months, Minister of State for Petroleum Resources Timipre Sylva told reporters Tuesday. The decision to defer the politically thorny reform comes with presidential and legislative elections…

LAGOS (Capital Markets in Africa) – Forecasting inflation is a staple of macroeconomic modeling, yet virtually all economists’ predictions for the United States in 2021 were way off the mark. This dismal performance reflected a collective failure to take economic models seriously enough, as well as other analytical shortcomings. In 2008, as the global financial crisis was ravaging economies everywhere, Queen Elizabeth II, visiting the London School of Economics, famously asked, “Why did nobody see it…