{"id":549451,"date":"2022-09-18T04:00:55","date_gmt":"2022-09-18T04:00:55","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/18\/us-stocks-hit-two-month-lows-investors-are-starting-to-come-back-to-frontier-market-african-debt\/"},"modified":"2022-09-18T04:00:55","modified_gmt":"2022-09-18T04:00:55","slug":"us-stocks-hit-two-month-lows-investors-are-starting-to-come-back-to-frontier-market-african-debt","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/09\/18\/us-stocks-hit-two-month-lows-investors-are-starting-to-come-back-to-frontier-market-african-debt\/","title":{"rendered":"US stocks hit two month lows + investors are starting to come back to frontier-market African debt"},"content":{"rendered":"

<\/a> Another grim week for US equities: <\/strong>The three major US stock indices dropped to two-month lows on intensified recession fears at the end of last week, Reuters<\/a> reports. Markets plunged on warnings from FedEx of an economic slowdown as it pulled its earnings forecast, following hotter than expected August inflation data earlier in the week. The S&P 500 was down 4.8%<\/a> for the week, while the tech-heavy Nasdaq dropped 5.5%, marking their worst weekly performances since June. The Dow Jones Industrial was down 4.1%.<\/p>\n

The <\/strong>S&P 500 closed below a key<\/strong> 3.9k mark on Friday<\/strong>, triggering alarm bells for investors. \u201cMarket risk is elevated as long as the index sits below 3.9k,\u201d one analyst said in a note cited by Market Watch<\/a>. \u201cBuyers need to throw everything they have at stocks right now to prevent further damage.\u201d<\/p>\n

Echoes of 2008: <\/strong>Financial Times<\/a> journalist Katie Martin draws parallels between current market woes and the 2008 crash \u2014 and suggests that until central banks are able to correct years of \u201coverly lavish support,\u201d they won\u2019t be able to break the cycle of boom-and-bust in the markets.<\/p>\n

Funds are dipping their toes back into frontier-market debt in Africa:<\/strong> Emergency loan programs from the IMF and China are gradually bringing foreign investors back into risky African sovereign debt, Bloomberg<\/a> reports. Data from the business newswire shows that asset managers such as BlackRock, Neuberger Berman Group and UBS have recently bought into eurobonds issued by African nations such as Angola and Ghana, marking a change from earlier this year when foreign investors exited the asset class amid fears of debt crises precipitated by Russia\u2019s war in Ukraine. A spate of recent IMF bailouts and China\u2019s decision to waive loans for 17 African countries have helped calm panic in the markets, with yields falling back from record highs since July.<\/p>\n

Also worth noting:<\/strong><\/p>\n