Growth in Sub-Saharan Africa appears to be fairly resilient to a variety of external shocks. In contrast, it is highly vulnerable to domestic shocks such as drought or civil conflict.
World stocks markets remained robust on Friday as Asian and European shares posted their biggest weekly gains in months. China’s Shanghai Composite Index closed above the 4,000 level for the first time since 2008 with a weekly gain of 4.4% and Japan’s Nikkei index past 20,000 points for the first time in 15 years with an increase of 2.4% for the week. Europe’s Stoxx 600 index closed 0.9% higher to surpass its all-time closing high reached yesterday. U.S. equities traded higher as well with both the S&P 500 and the Dow gaining 0.4% in midday trading.
Global stocks markets advanced on Thursday as Greece’s repayment of a €450 million loan installment to the International Monetary Fund lifted European stocks to a seven-year high. With recent weak data possibly pointing to less economic readiness for a rate hike, growing expectations that the Fed will delay the timing of monetary tightening until the latter part of the year also helped boost stocks. Meanwhile, U.S. Treasury yields rose as an auction of $13 billion in 30-year Treasury bonds saw weak demand and a smaller-than-expected jobless claims pointed to strengthening U.S. labor market.
Mexico is issuing its first 100-year euro-denominated bonds and its third so-called century bond as the country seeks to take advantage of attracting pricing conditions in the single currency. The Latin American sovereign is offering €1.5 billion of debt due in April 11, 2115 at a yield of 4.2%. Emerging-market sovereign and corporate borrowers from Bulgaria to China sold €20 billion of euro-denominated bonds in the first quarter of 2015 as they seek to lock in lower borrowing costs in Europe.
The European Central Bank said it has reached its bond-purchasing target of some €60 billion in the first month of its quantitative easing program. The ECB purchased €47.4 billion of public-sector bonds in March, and settled the rest of the monthly quota with covered bonds and asset-backed securities. The central bank has committed to buy about €60 billion of government and corporate debt a month until at least September 2016, making the stimulus package’s total value about €1.1 trillion.
|Significant oil price declines have historically been followed by fluctuations in activity and inflation in many countries. Empirical evidence suggests that the effects of oil prices on activity and inflation depend on the underlying source and direction of changes in prices. Also, the impact has declined over time.|
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The U.S. dollar slumped against the euro and yen after the weaker-than-expected U.S. jobs data in March prompted investors to reassess the path of Fed’s monetary tightening this year. The greenback declined 1% to $1.0993 per euro, and fell 0.7% to 118.89 yen. The dollar index, which tracks the dollar against the basket of its biggest peers, dropped 0.7% to a two-week low of 96.72.