#Africa #Markets | 22 Nov

By Rafiq Raji, PhD
Twitter: @DrRafiqRaji

Global Markets

* Stocks rally on boost from strong global growth, earnings.
* US sanctions 13 Chinese and N.Korean organizations.
#Global #Markets #US #China #NorthKorea

Oil markets

* Oil rises on data showing bigger draw on inventory. [Bear in mind record bullish trading positions, rising US and an expected OPEC cut extension. Also, EIA crude oil inventories data for week of 17 Nov due today at 1530GMT should provide greater insight on the extent of the draw] #Oil #OOTT #OPEC #API #EIA

Key African events or data releases today

* Day 2 of South Africa’s SARB MPC meeting. [Forecast of decision on 23 Nov is for the repo rate to be unchanged at 6.75%] #SouthAfrica #MPC

*Zambia central bank decides on interest rates. [Forecast is for a 100bps cut to 10%] #Zambia #MPC

* South Africa October inflation data due. [Forecast is 4.8% yy from 5.1%] #SouthAfrica #Inflation

Key African events or data releases yesterday

* Zimbabwe’s Mugabe resigns, ending four decades of rule, with civil society calling for national dialogue. [A positive surprise. His replacement, Emmerson Mnangagwa, to be sworn in momentarily, bears watching, as he is cut from the same cloth as Mr Mugabe] #Zimbabwe #Politics

* South Africa’s parliament delays passing key mining law [A positive for markets as industry players are averse to it in its current state] #SouthAfrica #Mining

* Mozambique inflation slows to 8.35% yy in October [from 10.76% in September]

* Nigeria holds benchmark interest rate at 14%. [A huge positive considering intense external pressure to ease. Incidentally, CBN governor Emefiele revealed the just concluded $3B Eurobond got $11B in bids] #Nigeria #MPC #Eurobond

* South African Airways remains undercapitalised despite bailout. [Symptomatic of the malaise in most SOEs] #SouthAfrica #SAA #SOEs

* Moody’s says sub-Saharan African countries face risk of financing stress. [True; especially as more go to the Eurobond markets to plug financing gaps] #Africa #Debt #Eurobond

* Mauritius trade deficit widens 5.8% yy in September.

* Yields rise at weekly South Africa government bond auction.

* South Africa eyes BRICS partners to build new $10 billion refinery.

* South African rate hikes seen coming soon as risks mount. [Inflation outlook does not support a rate hike] #SouthAfrica #MPC

*Chinese railway group inks $393M deal with Zambia.

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