Money Monday
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Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
Global petrol price rises by 20% - Punch
Petrol prices may increase further as international market data shows a 20% gain in the commodity. Brent crude rose to $83 per barrel, and petrol prices could reach $3 per gallon. A weak currency and inflation caused the dollar to rise against the naira. Nigeria, an oil-producing country, imports petrol due to non-functional refineries.
Rates Merger: MTN, Nestle, Dangote Cement, Others Suffered N486.82bn FX Losses in H1 - This Day
Following recent CBN foreign exchange market reforms, several companies including MTN Nigeria Communication Plc and Nestle Nigeria Plc suffered significant foreign exchange losses of N486.82 billion in H1 2023, a 651% increase from H1 2022. Other firms like Dangote Cement Plc and Nigerian Breweries Plc also reported worst performance despite increased revenue.
Global
White House cuts 2023 US deficit forecast after court blocks student loan forgiveness - Reuters
The White House revised the 2023 U.S. budget deficit to $1.543 trillion, down by $26 billion due to reduced outlays after the Supreme Court rejected Biden's student loan forgiveness program. Lower unemployment rates were forecasted for 2023 and 2024.
Fed-favorite PCE index rose 3% YoY, slowest pace in over two years - Reuters
U.S. inflation in June rose at its slowest pace in over two years, with underlying price pressures easing, supporting a "soft landing" for the economy and reducing the likelihood of a September rate hike. The PCE price index increased 3.0% in the 12 months through June, and the core PCE price index climbed 4.1%, both the smallest gains since their respective months in 2021.
US consumer sentiment rose to its highest level in over two years - Bloomberg
The sentiment index rose to 71.6 from 64.4 last month, indicating growing optimism among consumers about the economy. Consumers expect prices to climb at 3.4% over the next year. However, the final July reading was slightly weaker than earlier in the month, possibly due to rising gas prices.
White House cuts 2023 US deficit forecast after court blocks student loan forgiveness - Reuters
The White House revised its fiscal 2023 U.S. budget deficit forecast to $1.543 trillion, down by $26 billion due to reduced outlays after the Supreme Court struck down Biden's student loan forgiveness program. The forecast predicts a net reduction in 2023 outlays of $242 billion and lower unemployment rates for 2023 and 2024.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
Multiple Chinese property stocks rose Monday on optimism about Beijing’s latest efforts to boost housing demand and improve developers’ finances.
Official manufacturing PMI was 49.3 in July, almost in line with the consensus of 49.2.
China Beige Book survey that showed almost every major sector saw a weakening in both revenue and profit margin compared with June as consumers cut back on spending on everything but travel and restaurants.
China issues 20 measures to boost consumption but stops short of direct consumer support
Japan industrial production, retail sales finish Q2 higher - Industrial production rose 2.0% m/m in June, compared to consensus 2.4%, rebounding from a -2.2% drop in the previous month. Retail sales fell -0.4% m/m vs expected -0.7% decline, following a 1.4% rise in May.
RBA’s 1-Aug policy decision is likely to be a close call with views mixed on whether it will raise the cash rate by 25 bp to 4.35% or leave it unchanged for a second month
Chinese firms are seeking Korean partners to skirt US EV rules
Europe, Middle East, Africa
Q2 Eurozone preliminary GDP +0.3% QoQ vs consensus +0.2% and prior 0.0% while on an annualized basis, preliminary GDP +0.6% YoY vs consensus +0.5% and prior +1.1%
Eurozone inflation fell in line with expectations to 5.3% in July down from 5.5% in June. Core inflation remains unchanged at 5.5%.
German retail sales post first monthly decline since March. Sales for June declined 0.8% MoM vs expectations of +0.2% and upwardly revised 1.9% prior.
The Americas
Trucking firm Yellow shuts down operations ahead of an expected bankruptcy filing
Walmart spends $1.4B on buying the remaining stake in Flipkart
Shipping industry vulnerable to downturn amid record $90B spent on new ship orders by giants
Better breadth with nearly 90% of S&P 500 members above their 50-DMAs late in July. Pain trade is still higher with a record ~$5.5T in money-market mutual funds and still-light positioning in key cyclical pockets.
The Week Ahead:
Monday:
Large Retailer Sales (Japan)
NBS Manufacturing PMI (China)
Chicago Purchasing Managers Index (US)
Tuesday:
Unemployment Rate (Japan)
Caixin Manufacturing PMI (China)
Unemployment Rate (EA)
S&P Global Manufacturing PMI (Canada)
ISM Manufacturing PMI (US)
Wednesday:
BOJ Monetary Policy Meeting Minutes (Japan)
ADP Employment Change (US)
Thursday:
Producer Price Index (EA)
Bank of England Minutes (United Kingdom)
BoE Governor Bailey Speech (United Kingdom)
Initial Jobless Claims (US)
S&P Global Composite PMI (US)
ISM Services PMI (US)
Friday:
Retail Sales (EA)
Average Hourly Earnings (US)
Ivey Purchasing Managers Index (Canada)
Investment Tip of The Day
Stay updated on geopolitical developments, global trade agreements, and currency fluctuations to understand their potential impact on international investments. Assess the risks and opportunities associated with investing in foreign markets and consider currency hedging strategies to manage currency risk.
Meme of the Day
