21st February 2024 Morning Biz News: Global Financial Snapshot: Namibia Faces Grey Listing, South Africa’s Unemployment Rises, Oil Prices Recover, and Currency Markets Shift

February 21, 2024 9

In the realm of global finance, Namibia finds itself on the brink of grey listing due to non-compliance with international anti-money laundering standards. Despite Finance Minister Iipumbu Shiimi’s reassurance that Namibia passed the technical compliance test, progress in five out of 11 effectiveness test outcomes signals a potential challenge. Out of 72 action items, 59 have been successfully addressed, leaving 13 unresolved.

South Africa, on the other hand, experiences an unexpected increase in unemployment during the fourth quarter, deviating from the typical trend of job additions during the holiday season. Analysts note a rise in the official unemployment rate from 31.9% to 32.1%, presenting a sobering picture ahead of the country’s national and provincial elections.

In the volatile world of oil markets, prices exhibit a partial recovery in early Asian trade. Investors weigh concerns about output cuts by major producers and attacks on shipping in the Red Sea against dampened expectations of U.S. rate cuts. Brent crude futures and U.S. West Texas Intermediate crude futures see marginal gains, following a recent decline.

Shifting our focus to currency markets, the dollar weakens globally, aligning with declining bond yields. Sterling grapples to maintain gains after Bank of England Governor Andrew Bailey’s dovish comments on the central bank’s rate outlook. The greenback dips below 150 yen in early Asia trade, standing at 149.93 yen, offering some relief to the Japanese currency.

Now, let’s delve into the latest financial indicators: