Money Monday
Ranora Daily - Your daily source for reliable market analysis and news.
Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
Tax default: FIRS waives fines, issues Dec 31 deadline - Punch
Taxpayers are advised that the waiver of interest is subject to the full settlement of outstanding principal on or before 31 December 2023.
SEC, stakeholders urge FG to list more infrastructure bonds - Punch
By adopting these strategic approaches, governments and market participants can create a dynamic capital market that attracts diverse investments
Bilateral Trade Ties With Mexico - ThisDay
With total exports between Nigeria and Mexico valued at only about $94.30 million in 2022, the Executive Secretary/Chief Executive, Nigerian Export Promotion Council (NEPC), Nonye Ayeni, has said the council is currently working to further harness the full potential of both countries.
NASS C’ttee to propose, commence quick amendment of sections of PIA - Nigeria Business News
The House of Representatives’ Committee on Host Communities has assured the people of Niger Delta that it would quickly propose and commence the repelling of some defective sections of the Petroleum Industry Act, PIA, to meet the needs of the people of the area
IATF2023 exceeds targets with recorded deals worth up to $43.8bn—Afrexim - Nigeria Business News
African Export-Import Bank (Afreximbank) announces that the third Intra-African Trade Fair (IATF2023) held in Cairo from 9 to 15 November witnessed the conclusion of business deals and transactions valued at US$43.8 billion.
US firm, Barker Hughes set to build oil refinery in Nigeria - Vanguard
American oil firm, Barker Hughes, has expressed interest in investing in refineries in the country, as the federal government intensifies effort to end petroleum products importation.
INTELS waives $193m debt to resolve service boat contract – NPA - The Sun
The Nigerian Ports Authority (NPA) yesterday, said that INTELS Nigeria Limited waived $193 million as part of efforts to resolve the stalemate on the pilotage contract with the Federal Government.
Global
Uber, Jabil and Builders First Source set to join S&P 500 - Bloomberg
Uber, Jabil Inc. and Builders FirstSource Inc. will join the S&P 500 index, replacing Sealed Air Corp., Alaska Air Group Inc., and SolarEdge Technologies Inc. This addition reflects Uber's profitability and its leadership in the gig economy. Inclusion in the S&P 500 will boost Uber's investor profile, trading liquidity and potentially its stock price.
Bitcoin rises above $42,000 for first time since April 2022 - Reuters
Bitcoin price surpassed $42,000 for the first time since April 2022, fueled by hopes of US interest rate cuts and approval of exchange-traded bitcoin funds. Bitcoin's 50% rally since October suggests a shift away from bearishness, with Microstrategy buying additional $593 million in bitcoin in November.
Global Market Commentary
Overview
Bond yields and the US dollar declined following a mixed manufacturing survey and less hawkish comments from Fed chair Powell. The euro underperformed due to dovish ECB-speak. Notable data today includes Q3 company profits and inventories, along with October housing finance.
Currencies/Macro:
The US dollar was generally unchanged against the euro but softened against major currencies on Friday.
EUR/USD initially fell from 1.0910 to 1.0829 amid dovish ECB comments but later returned to 1.0890.
GBP/USD bounced from 1.2630 to 1.2710; USD/JPY dropped below 147.50, extending to 146.85 with Treasury yields.
November US ISM manufacturing survey at 46.7 (est. 47.8) remained in contractionary territory, with mixed components.
Fed chair Powell pushed back on easing speculation but in a less forceful manner than expected.
Canadian employment in November rose 24.9k; unemployment rose to 5.8%, wages growth at 5.0%y/y.
ECB member Villeroy suggested disinflation was developing faster than expected, rate hikes were over, and rate cuts could be considered in 2024.
Interest Rates:
US 2yr treasury yield fell from 4.69% to 4.54% (six-month low); 10yr yield fell from 4.34% to 4.20% (three-month low).
Markets expect the Fed funds rate to be unchanged on December 14, with a 65% chance of a rate cut in March 2024.
Credit markets reflected sentiment, with Main in 2bp to 66, CDX a further bp tighter at 61.5, and US IG cash little changed.
Commodities:
Crude markets saw another sharp drop as OPEC+ cuts failed to counter six consecutive weeks of losses.
January WTI contract down 2.5% to $74.07; February Brent contract down 2.45% to $78.88.
OPEC+ announced additional voluntary cuts until March 2024; Brazil rejects OPEC+ membership.
Diesel prices hit lows from mid-July; January NY ULSD contract down 3.37%.
Metals ended with copper surging through its 200-day moving average, closing up 1.9% at $8,625.
Other metals mixed; nickel up 1.5% to $16,890, aluminium up 0.3% to $2,200.
Copper inventory draws noted in New Orleans due to Panama Canal blockage.
Iron ore held above $130; January SGX contract at $131.35; 62% Mysteel index at $133.35.
Day Ahead:
Eurozone: Improvement in Sentix investor confidence anticipated in December.
US: Factory orders in October estimated to have fallen 3.0%; durable goods orders expected to be finalized for that month at -5.4%.
The Week Ahead:
Monday:
Tuesday:
ISM Services PMI (US)
JOLTS Job Openings (US)
Wednesday:
ADP Non-Farm Employment Change (US)
Thursday:
Unemployment Claims (US)
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 Environmental Policy Risks: Assess how companies in your portfolio may be affected by changing environmental policies, regulations, or global initiatives aimed at sustainability.
Service Spotlight of the week - Wealth Management.
Meme of the Day
