As African markets open for its first business day in the month of September, here are some factors to watch out for;
Global markets
Investors are anticipating the US job report and a possible rate cut by the Federal Reserve. These two factors could impact global currency market moves and how things pan out in African markets today.
Global crude oil prices
Another factor to watch is the price of crude globally. Earlier today, the price of Crude dropped by 3.11% to $73.55 per barrel. This comes as investors are expecting a higher production output by OPEC+ following a sharp drop in output by Libya and sluggish demand from Russia and the US.
Nigeria’s fuel scarcity
Nigeria’s fuel scarcity has lingered for weeks and it is expected to stretch even further amid a revelation that the NNPCL is owing suppliers $6 billion. This debt will disrupt supply chain, worsen the scarcity, affect business and ultimately impact the markets today.
China Africa summit
African leaders are gathering in China for the first time since the Covid-19 outbreak in a summit where they will seek loans and financial aid from Beijing.
China is also expected to pitch its green exports to African leaders at the summit amid a looming Western restriction on Chinese goods. The meeting is closely watched by investors and its outcome could impact the market today or even throughout the week.
Gold in DR Congo
DR Congo is looking for new buyers and investors in its gold industry. It has taken full control of Primera Gold and now has exclusive rights over the deposits in the Eastern part.
Investors are expected to start pouring in today as the country hopes to increase its revenue base from the gold sale.
