Global Market Review and Outlook

Developments in the global equities market this week were broadly driven by the decision of the Fed to make a major call on interest rate during the week. As noted above, the Fed concluded its meeting for the year by increasing the Fed-Fund rate to 0.25%-0.50% in line with market expectation. Consequently, major market indices around the world trended northwards.  The US S&P 500 and NASDAQ ended the week 0.9% and 0.7% higher W-o-W. Equally, the UK FTSE, German DAX, France CAC and Japan Nikkei recorded 1.8%, 2.6% and 1.8% gains W-o-W respectively. 

Although emerging market are projected to be the most hit by higher rates in the US going forward, immediate impact seemed muted as key indices within the BRICS classification steadied W-o-W. Russia RTS, India BSE Sens, China Shanghai and South African JSE/FTSE all closed stronger W-o-W, up 0.3%, 1.9%, 4.2% and 1.5% W-o-W respectively. However, Brazil Ibovespa was down 2.0% W-o-W on concerns surrounding economic recession as well as the social and political crisis in the country.

The African markets saw mixed performances as the Ghana GSE and Egypt EGX 30 indices both rose 0.8% and 0.5% respectively W-o-W. While Nigeria NSE and Kenya NSE 20 both dipped 2.7% and 0.1% in that order.