The expert magazine of Ostrum AM

Read our market review and find out all about our theme of the week in MyStratWeekly with our experts Stéphane Déo, Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.
This week :

Topic of the week: Africa: Covid-19 has awakened its old demons.

  • The last years of stability benefited from the strongest African growth of the century and had enabled poverty reduction;
  • The Covid-19 pandemic is a destabilizing force for the continent. The risk of instability is compounded by rising food prices and the effects of climate change;
  • In terms of investment choices, we favour countries with stable governance in the region and we stay away from countries that are net importers of agricultural products.

Market review: Back to the unknow

  • The South African variant pours cold water on global markets; 
  • Stocks plunge into hollow markets;
  • Flight-to-quality on Bunds, T-notes;
  • Notable unwinding of short positions on the yen.

Chart of the week

One aspect of the ongoing energy crisis is the jump in electricity prices. The price in France has jumped (EPEX Spot Day-Ahead Baseload Electricity Average Price/France) it has grown 399% compared to last year and 434% compared to the beginning of the year.
Although this has had little impact so far on the CPI, it will certainly have at some point in the future. This also means that the production costs for a number of sectors have increased significantly, which will constitute yet another problem for margins.

Inflation in Germany, according to the harmonized definition. Before this year that measure of inflation had never exceeded 3.5%. Although it’s most certainly the peak, it will inevitably trigger a hot debate.

MyStratWeekly : Market views and strategy

Download Download MyStratWeekly - November 29th 2021
  • Stéphane Déo

    Stéphane Déo

    Head of markets strategy

  • Axel Botte

    Axel Botte

    Global strategist

  • Aline Goupil-Raguénès

    Aline Goupil-Raguénès

    Developed countries strategist

  • Zouhoure Bousbih

    Zouhoure Bousbih

    Emerging countries strategist

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