RSF drones hit key sites near Sudan's army-held capital

A wave of drone strikes by the paramilitary Rapid Support Forces hit several key sites in the greater Khartoum area on Tuesday, shattering the relative peace that had prevailed there since Sudan's army retook the capital from the RSF six months ago.

The RSF claimed responsibility for the attack, saying it was in response to what it called "the criminal targeting" of hospitals and other civilian structures in the regions of Darfur and Kordofan.

"These qualitative operations targeted military and logistical sites that serve the enemy's war effort without harming civilians or their property," said the spokesman for the RSF-backed administration based in Darfur.

The army, locked in a devastating civil war against the RSF since April 2023, made no immediate comment on Tuesday's attack.

It caused a power cut in several parts of the greater Khartoum area, as well as in the Nile province to the north, residents said.

They said drones targeted Al Markhiyat, north of Omdurman – one of three cities that make up greater Khartoum – where several power transformers were destroyed. A fire broke out at the power station housing the transformers.

The drones also attacked Al Jaili oil refinery and Al Yarmouk military industrial complex, they said.

A military source was quoted by AFP as saying an airbase had also been targeted, but air defence systems foiled the attack.

Sudanese civilians queue for humanitarian aid in Khartoum. AFP

Tuesday's attack mirrored a wave of drone assaults in early May on Port Sudan, the temporary seat of the military-backed government on the Red Sea. Those attacks targeted the city's airport, fuel tanks and power stations.

The Khartoum attack also marks a significant escalation in the war and wider use of drones procured by both sides from their regional supporters. It is expected to curtail the return of residents, who had fled the fighting, to their homes in the capital region. At least half of the capital's nine million residents are thought to have fled Khartoum, Omdurman and Bahri.

The attack also comes as the army and the RSF are locked in fierce battles for control of El Fasher, the only city in the western Darfur region not held by the RSF. The city has been under RSF siege since May last year but the army has maintained control.

The fighting there is chiefly to blame for a humanitarian crisis inside the city and the outlying region, where famine has been declared.

There is no precise figure on how many people have been killed in the Sudan civil war, but the number is believed to be in the tens of thousands. The war has also forced the displacement of more than 13 million people and left half the population – about 25 million – facing hunger.

Efforts to mediate between Sudan's army chief and de factor ruler Gen Abdel Fattah Al Burhan and RSF commander Gen Mohamed Dagalo have failed to end the fighting, with the military vowing to fight until victory.

Sudan now has two rival administrations, with the military-backed government in Port Sudan controlling the areas held by the army in northern, central and eastern regions.

The RSF has set up its own administration in Darfur, with Nyala as its capital. The paramilitary also controls parts of Kordofan to the south-west.

Four reasons global stock markets are falling right now

There are many factors worrying investors right now and triggering a rush out of stock markets. Here are four of the biggest:

1. Rising US interest rates

The US Federal Reserve has increased interest rates three times this year in a bid to prevent its buoyant economy from overheating. They now stand at between 2 and 2.25 per cent and markets are pencilling in three more rises next year.

Kim Catechis, manager of the Legg Mason Martin Currie Global Emerging Markets Fund, says US inflation is rising and the Fed will continue to raise rates in 2019. “With inflationary pressures growing, an increasing number of corporates are guiding profitability expectations downwards for 2018 and 2019, citing the negative impact of rising costs.”

At the same time as rates are rising, central bankers in the US and Europe have been ending quantitative easing, bringing the era of cheap money to an end.

2. Stronger dollar

High US rates have driven up the value of the dollar and bond yields, and this is putting pressure on emerging market countries that took advantage of low interest rates to run up trillions in dollar-denominated debt. They have also suffered capital outflows as international investors have switched to the US, driving markets lower. Omar Negyal, portfolio manager of the JP Morgan Global Emerging Markets Income Trust, says this looks like a buying opportunity. “Despite short-term volatility we remain positive about long-term prospects and profitability for emerging markets.”

3. Global trade war

Ritu Vohora, investment director at fund manager M&G, says markets fear that US President Donald Trump’s spat with China will escalate into a full-blown global trade war, with both sides suffering. “The US economy is robust enough to absorb higher input costs now, but this may not be the case as tariffs escalate. However, with a host of factors hitting investor sentiment, this is becoming a stock picker’s market.”

4. Eurozone uncertainty

Europe faces two challenges right now in the shape of Brexit and the new populist government in eurozone member Italy.

Chris Beauchamp, chief market analyst at IG, which has offices in Dubai, says the stand-off between between Rome and Brussels threatens to become much more serious. "As with Brexit, neither side appears willing to step back from the edge, threatening more trouble down the line.”

The European economy may also be slowing, Mr Beauchamp warns. “A four-year low in eurozone manufacturing confidence highlights the fact that producers see a bumpy road ahead, with US-EU trade talks remaining a major question-mark for exporters.”