Finance Friday
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Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
Oil prices rise as OPEC meets - Premium Times
The price of crude oil rose on Thursday as the Organization of Petroleum Exporting Countries (OPEC) began its meeting.
Equinor Exits Nigeria After 30 Years, Sells Its Assets to Chappal Energies - Leadership News
Norwegian energy company Equinor has announced the sale of its Nigerian business, including its share in the Agbami oil field, to Nigerian-owned Chappal Energies. The transaction marks the end of Equinor’s three-decade presence in Nigeria.
Austria Seeks Partnership with Nigeria On Transportation Infrastructure - Leadership News
The Government of Austria has expressed its interest in partnering with the Federal Government of Nigeria to develop the country’s transportation infrastructure.
FG, US hold discussion on funding mining projects - Nigeria Business News
Some US officials of Energy and Natural Resources have held discussion with Minister of Solid Mineral Dele Lake on exploring ways to secure credit to finance mining firms and infrastructures in Nigeria
Global
OPEC+ agrees to deepen voluntary oil output cuts - Reuters
OPEC+ oil producers have agreed to voluntary output cuts of around 2.2 million barrels per day (bpd) for early next year. The cuts, which are aimed at supporting prices and stabilising the market, will be led by Saudi Arabia, which is rolling over its current voluntary cut. Other producers, including Russia, the UAE, Iraq, Kuwait, Kazakhstan and Algeria, will also make cuts.
Daily Market Commentary
Overview
Bond yields rebounded, and the US dollar strengthened, despite expected declines in inflation. The AUD showed resilience at 0.6605. The key focus is on comments from Fed chair Powell, while notable data includes China Caixin manufacturing PMI and the US manufacturing ISM.
Currencies/Macro:
The US dollar remained relatively flat against CAD and NZD but gained strength against other G10 currencies.
EUR/USD fell from 1.0970 to 1.0885; GBP/USD slipped -0.5% to 1.2625.
USD/JPY rose from 147.00 to 148.20 as Treasury yields increased.
AUD/USD dipped to 0.6571 but stabilized at 0.6605, slightly lower on the day.
NZD/USD remained flat at 0.6160; AUD/NZD 15 pips lower at 1.0730.
US core PCE deflator in October rose 0.2%m/m and 3.5%y/y; weekly initial jobless claims as expected; continuing claims rose to 1.927m.
MNI Chicago PMI jumped to 55.9 in November; pending home sales in October hit another record low.
Interest Rates:
US 2yr treasury yield bounced from a five-month low of 4.61% to 4.68%; 10yr yield bounced from lowest since mid-September to 4.32%.
Markets expect the Fed funds rate to be unchanged on December 14, with a 40% chance of a rate cut in March 2024.
Australian 3yr government bond yields rose; no change expected at the next meeting, 35% chance of one in February 2024.
New Zealand rates markets project unchanged OCR on February 28, no further rate hikes, and a 50% chance of a rate cut in July 2024.
Commodities:
Crude markets experienced volatility with optimism on OPEC+ cuts countered by Angola’s rejection of its cap.
January WTI contract down to $76.09; January Brent contract down to $83.22.
OPEC+ extends cuts into Q1 2024; Brazil to join the cartel in January.
Metals mixed with copper up 0.6% to $8,469; aluminium was down 0.9% to $2,194; zinc down 1.1% to $2,472; nickel down 2.8% to $16,635.
Chile reports October copper production down 4.4%yy; EU may concede on Global Agreement on Sustainable Steel and Aluminium (GSA).
Iron ore sees a modest bounce; January SGX contract up to $129.15; 62% Mysteel index rises to $131.65.
Day Ahead:
US: Federal Reserve Chair Powell to speak at two events; ISM manufacturing PMI likely to improve but remain fragile in November; October’s construction spending data to remain subdued.
Global: Final estimate of November’s S&P Global manufacturing PMI for Japan, Eurozone, UK, and US; COP28 meetings and presentations in Dubai.
The Week Ahead:
Monday:
Tuesday:
US CB Consumer Confidence increased in November to 102.0
Wednesday:
US GDP q/q expanded an annualized 5.2% in Q3 2023, higher than 4.9% in the preliminary estimate
Thursday:
US Core PCE Price Index MoM is at 0.20%, compared to 0.30% last month
US Initial Jobless Claims in the United States increased to 218 thousand in the week ending November 25
UK manufacturing PMI up to 47.2 in November
Friday:
US ISM Manufacturing PMI was unchanged at 46.7 in November
Investment Tip of The Day
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Meme of the Day
