The Markets

CONAKRY (Capital Markets in Africa) – Aluminum climbed to the highest in more than a decade as political unrest in Guinea fueled concerns over supply of the raw material needed to make the metal.A unit of the military seized power and suspended the constitution, with head of special forces, Colonel Mamady Doumbouya, urging the army to back him. That rattled global aluminum markets Monday — prices in London notched a fresh 10-year high and futures…

LAGOS (Capital Markets in Africa) – Bitcoin surged Monday to a nearly three-month high as policy makers hashed out last-minute compromises over how to tax crypto assets. The largest digital coin rose as much as 5.4% to reach $46,245 during New York-trading hours. The rally is a continuation of recent momentum — the coin is up roughly 17% over the past week. Peer coins also benefited, with Dash, Ether and Litecoin, among others, each up…

NAIROBI (Capital Markets in Africa) – Kenya’s 91-day Treasury Bills yield dropped to the lowest in about 15 years as banks sought safer assets amid the coronavirus pandemic. The weighted average yield of the notes was at 6.513% at last week’s auction, the lowest since September 2006, according to Central Bank of Kenya data. The rate for 182-day bills was 7.046% and 364-day securities at 7.418%. “High liquidity has been attributed to cautiousness by banks amid the…

LAGOS (Capital Markets in Africa) – Bitcoin pulled back to around $40,000 after climbing over the weekend to the highest levels since May. The largest cryptocurrency fell about 4.8% to $39,280 as of 8:42 a.m. in New York after dropping as much as 5.6% Monday. Other virtual coins including second-ranked Ether also fell. Analysts suggested profit-taking lay behind the declines. This is “just a normal pullback following bullish action,” said Vijay Ayyar, head of Asia Pacific…

LAGOS (Capital Markets in Africa) – Gold is primed to surge to fresh highs as the risks around central banks unwinding massive stimulus are under-appreciated by investors, said a fund manager who forecast the metal’s ascent to a record last year. Diego Parrilla, who manages the $250 million Quadriga Igneo fund, said there isn’t widespread awareness of the long-term damage that’s been caused by ultra-loose monetary and fiscal policies. Artificially low interest rates have created…

LAGOS (Capital Markets in Africa) – Some of the assets most exposed to fears around the spread of the delta variant are luring traders with tempting signals of strength and stability. Emerging-market corporate earnings have outpaced estimates for the first time in 30 months amid an economic rebound in developing nations. Meanwhile, MSCI’s index of emerging currencies remains up this year, defying the declines seen this month. Stocks fell 2.2% today, erasing this year’s gains as China’s widening-technology-sector crackdown weighed on…

ADDIS ABABA (Capital Markets in Africa) – Ethiopian bonds plunged, sending yields to the highest in more than a year, as the nine-month conflict in the Tigray region spilled into a neighboring area. The chief administrator of Ethiopia’s Amhara region on Sunday issued a call to arms to defend his territory against rebels advancing southwards from Tigray. Fighting has already spread to the Afar region on Tigray’s eastern border, jeopardizing a key trade artery that…