African Markets – Top Stories on May 31
NAIROBI, May 31 (Reuters) – As African markets gear up for another day of trading, several key events and indicators are set to shape the day’s activities. From economic data releases to political developments, here are some of the factors to watch on May 31.
EVENTS:
– Kenya and Uganda are set to release their consumer inflation data for May, providing insights into the economic landscape of the two East African nations.
– The Democratic Republic of Congo’s central bank will convene its first monetary policy committee meeting of the year, with potential implications for the country’s financial sector.
GLOBAL MARKETS:
– Asian stocks have been on the rise, heading towards the fourth consecutive month of gains. The dollar’s decline has kept the yen stable, as investors eagerly await inflation reports from Europe and the U.S. for signals on global interest rates.
WORLD OIL PRICES:
– Oil prices experienced a dip on Friday in response to comments from U.S. Fed officials cautioning against premature rate cuts. Additionally, a surprise increase in U.S. gasoline stocks has weighed on the market sentiment.
SOUTH AFRICA MARKETS:
– Political uncertainty in South Africa has led to a decline in the country’s currency, stocks, and bonds. Election projections indicating a potential shift in parliamentary majority have added to the market volatility.
AFRICA CURRENCIES:
– Traders anticipate the Kenyan shilling and Zambia’s kwacha to strengthen against the dollar, while Ghana’s cedi is expected to weaken. The Nigerian naira and Uganda’s shilling are forecasted to remain stable in the coming week.
NIGERIA WORLD BANK LOAN:
– Nigeria has secured a $500 million World Bank loan to bolster its electricity sector, following recent tariff adjustments aimed at enhancing power distribution across the nation.
KENYA MARKETS:
– The Kenyan shilling saw a boost on Thursday fueled by dollar inflows from tea exporters, indicating positive movements in the local currency market.
KENYA WORLD BANK LOAN:
– The World Bank has approved a $1.2 billion budget support package for Kenya, aimed at addressing short-term fiscal challenges and promoting sustainable policies in the East African nation.
WEST AFRICA POLITICS:
– Senegalese President Bassirou Diomaye Faye discussed regional bloc ECOWAS with his Malian counterpart during an official visit, highlighting potential shifts in regional dynamics.
IVORY COAST COCOA:
– Ivory Coast’s cocoa regulator has communicated to exporters that a discount for grading beans from the mid-crop will not be applicable for deferred contracts, as per the Coffee and Cocoa Council’s recent directive.
Stay tuned for updates on these developments shaping African markets today.
((Compiled by Nairobi Newsroom))
