Browsing: money markets

Financial markets
  • Financial markets provide liquidity essential for bolstering economic growth and stability.
    While well-regulated financial systems are essential for macroeconomic stability
  • Good financial markets are critical in channeling resources into productive investment and fostering growth.
  • Strengthening judicial systems and enforcing regulations are thus central to deepening financial systems. Protecting creditors‘ and borrowers‘ rights, enforcing contracts, and establishing transparent information-sharing mechanisms are also prerequisites for financial deepening.

Financial markets play a vital role in enhancing the smooth operation of economies by allocating resources and creating liquidity for businesses and entrepreneurs. The markets make it easy for investors and traders to trade their holdings. They additionally create security products that provide returns for investors/lenders and make these funds available to those needing extra financing.

Stock market, bond market, forex, commodities, and the real estate market, just to name a few, are examples of commodities in financial markets. Moreover, they can be divided into …

Concerns about the pandemic especially with new fast spreading mutations, heightened political activity and uncertainty around the shape of business and economic recovery continues weighing heavily on risk asset pricing in the local market.

The distribution of vaccines is off to a slow start especially in the developed countries while locally, news flow indicate vaccines will be available later this month than as previously indicated.…

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Risk asset prices rebounded globally with the benchmark MSCI (Morgan Stanley Composite Index) World trimming first quarter losses to -6.6% at the end of the first half of the year. The steady state in the global financial markets has been anchored on the accommodative policies in the developed economies and easing of containment measures in some pockets across the globe.

Some equity markets such as in the emerging world have recouped back the first quarter losses while frontier markets are trailing 18.1% from the start of the year levels. US Dow Jones Industrial Average benchmark that tracks the 30 largest listed companies, posted its hitherto best quarterly performance in 33 years with a return of 17.8% in the quarter ending June 2020.

Also Read: New rebirth for Kenyan retail sector as foreign capital flows in

Closer home, revised estimates have struck a bearish tone as per our second quarter outlook.…