As expected by most investors, the Federal Reserve raised its target federal funds rate by 0.25 percent on 16th December, the first such hike since 2006. A priori not a good news for African markets where the main concern could be an acceleration of capital outflows and a return of money to the US. The rate hikes further strengthening the US dollar could cause a spill over effect and potentially exacerbate the emerging market currency turmoil.

Going into the second week of December, African markets showed mixed performances. BRVM declined 2.18% to close the week at 298.40. The same declining trends was witnessed on the EGX 30 (-2.09%), GSE-CI (-0.94%), MASI (-2.35%), NSX OI (-13.63%), NGSE ASI (-1.31%) and the JSE ASI (-2.47%).