Money Monday
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Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
CBN moves to reduce dollar exchange rate, issues new guidelines to BDCs – Premium Times
The Central Bank of Nigeria has announced additional guidelines for Bureau De Change operators in a bid to improve efficiency of the Nigerian foreign exchange market. The decision comes two years after the apex bank banned the sale of dollars to BDCs amid efforts to stabilize the market.Niger coup: ECOWAS rejects Tchiani’s transition plan - The Guardian
The Economic Community of West African States (ECOWAS) has said it won’t accept the Republic of Niger junta’s three-year power transition plan. The ECOWAS Commissioner for Political Affairs, Peace, and Security, Abdel-Fatau Musa, disclosed this on Sunday during an interview with the BBC.
Global
Oil up 1% on tighter supplies and heating oil prices - Reuters
Oil prices rose more than 1% on Monday as tighter supply reflected in fewer exports from Saudi Arabia and Russia and high heating oil prices outweighed concern over global demand growth.
China Local Governments to Sell $206 Billion of Financing Debt - Bloomberg
China is considering stronger action to address risks from local government financing vehicles, with Caixin reporting on a plan to give the businesses cheap funding as debt concerns mount.
Russia’s Luna-25 Spacecraft Crashes Into Moon - Wall Street Journal
Russia has been in a race with India to become the first country to land a rover on the moon’s unexplored south pole
Weekly Investment Watchlist
Market Commentary
Asia and Australia:
Asian equities finished Monday mixed. Hang Seng and Shanghai lost ground as the PBOC disappointed with smaller-than-expected LPR cuts, sending both to year-to-date lows. Japan held on to modest gains, while Australia drifted lower into the close.
China made another marginal cut to its rates, with the 1-year LPR (Loan Prime Rate) reduced by a mere -10 bps to 3.45%, disappointing market expectations of a -15 bps cut. The 5-year rate remained unchanged at 4.2%.
The Bank of Thailand is likely to pause on rates following slower-than-expected GDP data. Thailand’s economy expanded at a slower-than-expected 1.8% in Q2 YoY, below consensus and Q1's growth rate.
Australian LNG workers gave notice of industrial action, risking a strike if Wednesday’s bargaining round is unsatisfactory, potentially impacting natural gas prices.
South Korea’s exports fell 16.5% YoY during the first 20 days of August, with chip exports falling 24.7%.
Europe, Middle East, Africa:
European equity markets were higher, with energy, consumer products/services, and healthcare leading the gains, while real estate and construction/materials lagged.
Energy led the gains as crude prices firmed due to global supply tightening. Lower exports from Saudi Arabia and Russia offset concerns about demand growth amid high-interest rates.
German PPI came in cooler than expected and better than the previous month, with YoY PPI dropping by -6% and MoM PPI dropping by -1.1%.
The Bundesbank’s monthly report highlighted that the German economy is still in a weak growth phase after stagnating in Q2. Weak foreign demand and increased financing costs are weighing on the economy.
UK housebuilders were among the main decliners in European trade as the UK asking prices for home sellers fell at the fastest rate since the summer of 2018.
Ukraine is close to a deal with global insurers to cover grain ships traveling to and from its Black Sea ports, which could potentially ease wheat prices.
The Americas:
Goldman Sachs noted that its Equity Sentiment Indicator showed a decline last week, indicating reduced positioning metrics in comparison to the previous period.
US consumers have drawn down more than $2 trillion in pandemic-era excess savings, which could act as a headwind to consumer spending.
Goldman Sachs is considering the sale of a part of its wealth business catering to high-net-worth clients.
USD/JPY is expected to resume upside momentum, with JPMorgan suggesting that Japan’s threshold for yen intervention could be around 150 yen per dollar.
The Week Ahead:
Monday:
China PBOC Interest Rate Decision
Tuesday:
US Existing Home Sales Change (MoM)(Jul)
Wednesday:
S&P Global/CIPS Composite PMI (Aug) PREL (UK)
Retail Sales (MoM)(Jun) (Canada)
S&P Global Manufacturing PMI (Aug) PREL(US)
Consumer Confidence (Aug) PREL (EU)
Thursday:
ECB Monetary Policy Meeting Accounts (EU)
Durable Goods Orders (Jul)
Friday:
GFK Consumer Confidence (Aug) (UK)
Investment Tip of The Day
Start an emergency fund Establish an emergency fund to cover unexpected expenses. Aim to save three to six months' worth of living expenses in a liquid and easily accessible account. This will provide a financial safety net and reduce reliance on credit cards or loans during emergencies
Meme of the Day
