The Markets

CAIRO (Capital Markets in Africa) — Spiking U.S. Treasury yields and a rise in global commodity prices mean Egypt is likely to leave the world’s highest real interest rate unchanged on Thursday. With investors fleeing riskier assets, Egypt’s focus will likely be on retaining the competitive edge that’s driven foreign investment in its debt to a record high. All 12 economists surveyed by Bloomberg predict the central bank’s Monetary Policy Committee will hold its benchmark deposit rate…

LAGOS (Capital Markets in Africa) – Online trading is becoming increasingly popular, with Modern Trader reporting that the number of global online traders has grown from 9.5 million four years ago, to more than 15 million today. Dany Mawas, Regional Director at INFINOX, a leading CFD and FX broker with an international presence including in Africa, attributes this growth to technological advances, which makes trading convenient and fast. Traders can now trade from anywhere and at…

LAGOS (Capital Markets in Africa) — As rising government bond yields stir up angst on financial markets, one person who sounds unfazed is U.S. Treasury Secretary Janet Yellen. Her own go-to measure of debt costs is headed in the opposite direction. Interest payments on the national debt fell last year, to $345 billion or 1.6% of gross domestic product. They’re on track to shrink further in 2021 — even after all the pandemic spending, plus a debt-market…

LAGOS (Capital Markets in Africa) — Bitcoin has given up all the gains made over the weekend when prices reached a record $61,000. Prices for the largest cryptocurrency shot up on Saturday, only to quickly retreat in the following days. The largest cryptocurrency sank almost 7% on Monday and was little changed on Tuesday, trading around $55,900 during the London morning. The volatility is due to investors taking some profit after Bitcoin’s recent run, said Vijay Ayyar, head…

LAGOS (Capital Markets in Africa) — You’d think a world tiptoeing its way out of the coronavirus pandemic might only be good news for governments and economies. Yet the consequent surge in the price of energy, metals, and crops is highlighting the strengths of some and the vulnerabilities of others.  Oil has climbed 75% since the start of November as major economies vaccinate their populations and reopen after the pandemic shut down factories and grounded planes. Copper, used…