Business & Tech News
OIL Breaks Above $81 Price level:
Oil prices hit prices last seen in Q3 of 2024 and extended gains for a third session this morning, that saw Brent Crude breaking above $81 a barrel to its highest level in more than four months, On Friday, the U.S. imposed some of the harshest sanctions yet against Russia’s oil industry, targeting two large exporters, over 180 vessels, and more than 150 tankers. These restrictions are expected to severely impact Russia’s ability to supply oil to key markets such as China and India, forcing these nations to seek alternatives in the Middle East, Africa, and the Americas.Brent crude futures climbed $1.48, or 1.86%, to $81.24 a barrel, after hitting an intraday high of $81.49, the highest since Aug. 27. U.S. West Texas Intermediate crude rose $1.53, or 2% to $78.10 a barrel after touching a high of $78.39, the most since Oct. 8.
Gold Save-Haven Status Holds Price Gains
Gold hit its highest price since Dec 12 in early trade today, and looks to be heading to the $2690 mark, underpinned by safe-haven demand amid uncertainty surrounding the policies of the incoming U.S. administration. President-elect Donald Trump is set to take office next week, and his proposed tariffs could spark trade wars and inflation, creating a favourable environment for the precious metal, widely regarded as a hedge against inflation. However, stronger-than-expected U.S. jobs report on Friday pointed to an improving labour market and a robust economy, bolstering expectations that the Federal Reserve may proceed with a slower pace of rate cuts this year. This might exert downward pressure on gold, as higher rates reduce the appeal of holding the non-yielding asset. Investors are now closely monitoring the release of U.S. CPI inflation data due later this week, which may provide further insights into the Fed’s monetary policy direction.
Currencies Struggle Against Dollar Strength
The US Dollar has started the week in a definite strong note this morning leaving multiple currencies close to multi-year lows. This follows strong U.S. jobs data that indicated clear strength and growth in the world’s largest economy compared to the rest of the world. The euro fell 0.3% to $1.0216, close to Friday’s low of $1.0212, its weakest level since November 2022. Sterling slid to a 14-month low of $1.2138, compounded further by concerns in the UK of extensive borrowing debt costs and growing unease over Britain’s poor management of finances. Movement in the Chinese yuan also gathered attention from markets in the Asian session, which saw thinned trading due to a holiday in Japan.
China this morning, increased efforts to defend its weakening currency by relaxing rules to allow more offshore borrowing by Chinese companies. The Rand has fallen by 0,31% to the dollar to reach its lowest level since April 2024, with most major African currencies also losing ground to a stronger US Dollar.
Market News
Currencies:
The US Dollar has strengthened sharply overnight and is currently trading at 1.028,33 against the Euro, at 1.2276 against the Pound, and at 158.35 against the Yen. The Rand continues to take a beating against the stronger US currency, with the currency currently trading at R18.95 to the dollar and may well breech the R19.00 to the dollar level.
Commodities:
- Gold prices continue to gain momentum in trade today, with the price currently at $2,686 per ounce. With Silver and copper easing slightly from Friday’s highs. Copper is currently at 4.2611 and Silver at 30.208
- Platinum prices have eased today, and is currently trading at $975.50, while Palladium prices have gained more traction this morning and currently trading at $947.50
- Brent prices have continued to climb this morning, and currently trading at $81.06 currently with WTI also trading upwards at $78.01 currently.
- Cocoa futures have fallen further below the $11000 mark, with prices currently at $10 537.52 per ton.
- Coffee prices have gained this morning, and at $3.24.93 per pound currently.
Crypto Currencies
- Bitcoin has stabilised in trade this morning, and is currently trading at $94331.
- Ether prices have also dropped slightly today, and is trading at $3230.84 currently.
(All prices quoted at approximately 07H20 – Central African Time)
Other News in Africa Today
Chad Election Results Released:
In the first national parliamentary election in over 10-years, Chad’s ruling Patriotic Salvation Movement party (PSM) took the majority of votes in last month’s parliamentary election. The election was boycotted by the main opposition. Provisional results that were only released over the weekend indicate that the PSM party took 124 out of 188 seats, while the voter turnout was 51.5%. The provisional results were announced by Ahmed Bartchiret, head of the electoral commission. The national election, which also included regional and municipal elections, was the last stage of the country’s transition to democracy after Mahamat Idriss Deby took power as military ruler in 2021. The takeover followed the death of Deby’s father and longtime president Idriss Deby Itno, who spent three decades in power.
Ethiopia and Somalia Restore Diplomatic Relations:
Following in-depth discussions during a two-day visit by Somali President Hassan Sheikh Mohamud to Addis Ababa, where he held discussions with Ethiopian Prime Minister Abiy Ahmed, The leaders have agreed to mend diplomatic ties that were strained by Ethiopia’s MOU with Somaliland. Somalia’s ambassador to the African Union in Addis Ababa will also serve as Somalia’s new ambassador to Ethiopia. In return, Ethiopia will send a new ambassador to Somalia and assign consular representatives according to statements released.
The diplomatic relationship between the two nations was damaged last year when Somalia declared the Memorandum Of Understanding between Ethiopia and Somaliland to be “null and void” and a violation of its sovereignty. Somaliland has declared independence from Somali and has held its own independent elections but is not recognised by Somalia. The fallout led to the expulsion of Ethiopia’s ambassador to Somalia and the order to close Ethiopian consulates in Hargeisa and Garowe, although both consulates continue to operate. The two leaders pledged to “restore and enhance” bilateral relations through full diplomatic representation. Both leaders emphasized that regional stability hinges on strong cooperation built on mutual trust and respect.