The Markets

LAGOS (Capital Matkets in Africa) – A strengthening dollar is reducing the appeal of emerging-market carry trades, which handed investors their biggest monthly loss in 18 months. An index that measures returns from borrowing in dollars and investing the funds in eight high-yielding currencies, such as the Turkish lira, Brazilian real and Indonesian rupiah, lost 3.3% in September, the most since March 2020. The Bloomberg Cumulative FX Carry Trade Index is now down 1.2% this year. The…

JOHANNESBURG (Capital Markets in Africa) – South African stocks are feeling the pain coming from China. The country’s benchmark equity index has posted its worst quarter since the first three months of 2020 amid concern about an energy crunch weighing on China’s economic growth and Beijing’s regulatory crackdown on key sectors including technology. China is the biggest buyer of South African raw materials. With the 18-month rally in industrial metals on shaky ground, and the Federal Reserve…

ADDIS ABABA (Capital Markets in Africa) – The yield on Ethiopia’s $1 billion of Eurobonds surged after the government’s expulsion of seven senior United Nations officials drew criticism from the UN chief and a fresh threat of U.S. sanctions. The rate on the debt jumped 24 basis points to a record high of 12.1% by 11:17 a.m. in London. The yield has almost doubled since a conflict erupted in the country’s northern Tigray region in…

NEW YORK (Capital Markets in Africa) – The cryptocurrency crowd has wasted no time in dancing on the grave of China’s “FUD” (internet speak for fear, uncertainty and doubt). Last week’s move by the People’s Bank of China to ban crypto transactions and mining dented the prices of Bitcoin, Ethereum and other digital currencies, but they’ve largelyrebounded. The bulls reckon the latest attempt by Beijing to crack down on crypto — the seventh, by research…

NEW YORK (Capital Markets in Africa) – Robert Kiyosaki foresees a “giant stock market crash” within the next month, but believes in holding on to a few select asset classes. What Happened: In a tweet from Sunday, the “Rich Dad Poor Dad” author told his 1.7 million Twitter followers he expects a massive crash in the near future. “Giant stock market crash coming October. Why? Treasury and Fed short of T-bills,” said Kiyosaki. “Gold, silver, Bitcoin may crash too….

HARARE (Capital Markets in Africa) – Zimbabwe has been asked to settle a $70 million debt after it lost an international arbitration case over canceled nickel and platinum ventures between a private company and the state miner more than a decade ago.  Companies linked to Amaplat Mauritius Ltd. made the proposal in a Sept. 15 letter to Zimbabwe’s Secretary for Finance and Economic Development, George Guvamatanga, seen by Bloomberg.  The alternative is having the assets of…