Finance Friday
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Market News
Local
CBN now runs on review charter—Cardoso - Nigeria Business News
The Governor, Mr. Olayemi Cardoso, has approved the Central Bank of Nigeria’s reviewed Service Charter. This was disclosed in Cardoso official Twitter handle. The Service Charter is a requirement of the Business Facilitation Act (BFA) 2022 for driving the ease of doing business in Nigeria.
Nigeria attracts $5bn funding from COP28 to boost climate action efforts—FG - Nigeria Business News
The Federal Government has disclosed that its participation in the COP28 Climate Summit in Dubai, UAE has yielded over $5 billion in commitments to boost its climate action efforts.
Global
Mortgage rates in US fall for sixth week, dropping to 7% - Bloomberg
US mortgage rates fell to the lowest level since August, with the average for a 30-year fixed loan reaching 7.03%. While this brings relief to homebuyers, affordability remains tight due to limited housing supply. Purchase loan applications saw an initial rebound before diminishing again, indicating that further rate drops are needed to reinvigorate demand.
Gasoline set to get even cheaper as futures hit two-year low - Bloomberg
US gas prices are set to fall further as futures sink to a two-year low. This signals lower inflation as gasoline consumption drops and supply increases. Retail prices are already at their lowest point of the year, offering financial relief to households and boosting consumer sentiment. This also benefits President Biden ahead of the US election season.
Global Market Commentary
Overview
The US dollar concluded a 3-day winning streak, influenced by a rally in US equities and a surge in the Japanese yen driven by expectations of policy changes. The primary focus for the day is centered on the release of the US November employment report, with additional attention directed toward the US December consumer sentiment.
Currencies/Macro:
The US dollar’s winning streak ended as yields decreased, US equities rallied, and the yen surged on anticipated BoJ policy adjustments.
EUR/USD gained +0.3% to 1.0800, GBP ticked up +0.2% to 1.2590, and CAD struggled at an unchanged 1.3600.
US weekly initial jobless claims were benign at 220k, and continuing claims were 1.851mn.
US final October wholesale inventories marked down to -0.4%m/m, with wholesale sales falling -1.3%m/m.
Eurozone final 3Q GDP remained unchanged at -0.1%q/q, potentially indicating a technical recession in H2 2023.
German October industrial production fell -0.4%m/m, raising concerns about a regional recession.
Interest Rates:
The US 2yr treasury yield slipped to 4.59%, and 10yr yields pared back to around 4.14%.
Markets anticipate no change in the Fed funds rate at next week’s FOMC announcement.
Credit spreads held firm, with Main at 67, CDX in half a bp to 62.5, and US IG cash flat to a bp better.
Commodities:
Crude markets marked time despite the US$ slide, with January WTI up 24c at $69.62 and February Brent up 9c at $74.39.
Metals were mixed, with copper benefiting from the weaker US$, but aluminum down 0.8% on weak demand.
Iron ore prices surged on Chinese import data.
Day Ahead:
The RBA Head of Financial Stability, Andrea Brischetto, is speaking at the Banking and Financial Stability Conference.
US: November non-farm payrolls and December University of Michigan US consumer sentiment.
The Week Ahead:
Monday:
Tuesday:
US ISM Services PMI is at a current level of 52.70, up from 51.80 last month
US JOLTS Job Openings fall to 8.7 million in October vs. 9.3 million forecast
Wednesday:
US ADP Non-Farm Employment increased by 103,000 jobs in November and annual pay was up 5.6 percent YoY
Thursday:
US Unemployment Claims edged higher by 1,000 to 220,000
Friday:
Average Hourly Earnings m/m (US)
Non-Farm Employment Change (US)
Unemployment Rate (US)
Prelim UoM Consumer Sentiment (US)
Investment Tip of The Day
Evaluate Cybersecurity Measures: In an increasingly digital world, scrutinize companies' cybersecurity measures. Cyberattacks can pose significant risks, impacting operations, reputation, and shareholder value.
Service Spotlight of the week - Wealth Management
Meme of the Day
