Money Monday
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Market Data
Local
Global
*Data as of 6pm WAT
Market News
Local
Local Content Board To Issue Policy On In-Country Manufacturing – Daily Trust
The Nigerian Content Development and Monitoring Board (NCDMB) has said it would soon issue policy directives on in-country manufacturing capabilities of pumps, flanges, valves, and other major equipment categories utilised in different streams of the oil and gas industry, which constitute a huge percentage of capital and operational expenditures.Nigeria's Headline inflation increased to 22.79% YoY in June 2023; 0.38% higher than 22.41% recorded in May 2023.
On a monthly basis, the headline index was up by 2.13% in June, up by 19bps relative to the 1.94% MoM increase recorded in May.
Global
US consumer sentiment near two-year high in July - Reuters
The University of Michigan's preliminary reading on the overall index of consumer sentiment came in at 72.6 this month, the highest reading since September 2021, compared to 64.4 in June. Economists polled by Reuters had forecast a preliminary reading of 65.5.China reports second-quarter GDP miss, another record high in youth unemployment - CNBC
second-quarter gross domestic product grew by 6.3% from a year ago, missing expectations. The unemployment rate among young people ages 16 to 24 was 21.3% in June, a new record.
Hedge funds rush to unwind bearish stock positions - Reuters
Global hedge funds rushed to unwind bets that U.S.-listed stocks will fall, as a persistent rally threatens their performance, JPMorgan Chase and Goldman Sachs told clients in reports.
JPMorgan, Wells Fargo prepare for losses on office loans - Reuters
JPMorgan Chase and Wells Fargo said on Friday they set aside more money for expected losses from commercial real estate loans, in the latest sign that stress is building up in the sector.
Investors hedge against a European stock market downturn - Financial Times
Cautious investors are snapping up derivatives that would protect them if this year’s rally in European stocks crumbles, in a sign of mounting concerns that slowing economic growth will weigh on markets sitting close to record highs.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
China’s GDP data comes in mixed but, not altogether encouraging. Q2 GDP expanded 6.3% y/y, below the consensus of 7.3%, and follows 4.5% in the previous quarter. However, sequential growth came in at 0.8% q/q, firmer than consensus 0.5%, following 2.2% in Q1.
China’s PBOC injected CNY103B in new MLF funding while keeping the rate unchanged at 2.65%, both matching expectations.
China property investment fell 7.9% y/y in Jan-Jun, versus Bloomberg forecast of a 7.5% drop
Singapore's non-oil exports (NODX) fell 15.5% y/y, the ninth consecutive contraction
Europe, Middle East, Africa
Poll of economists show ECB to bring rates to 4% peak in September
Property website Rightmove said the price of UK property coming to the market fell for the second month in July, with prices down 0.2% m/m
Russia announced Monday it had ended participation in the UN-brokered grain deal, which had allowed Ukraine to export grain through the Black Sea after Moscow blamed Kyiv for an attack on the Crimean Bridge. Pact will end with immediate effect.
The Americas
Net Interest Margin pressure seen in State Street's Q2 results may be a better bellwether for the industry than money center names
Yellen says it 'premature' to scrap Trump tariffs, but the US should look for ways to further de-escalate tensions with China
Musk says Twitter's ad revenue is down 50%, the company still cash flow negative
BlackRock expects a surge in bond fund investments (funded by money-market fund outflows) after Fed stops raising rates
Investors using a 50% rally in ARK Innovation ETF this year to get out
Repayment of student loan debt could feel like a pay cut of ~4-5%, have an outsized impact on apparel and T&E spending
Americans increasingly tapping HELOCs to take advantage of equity ramp from higher prices
The Week Ahead:
Monday:
China's Gross Domestic Product
NY Empire State Manufacturing Index
Tuesday:
US Retail Sales
Wednesday:
UK Consumer price index
US Building Permits
Thursday:
China’s PBoC Interest Rate Decision
US Initial jobless claims
US Existing Home Sales Change
Friday:
UK GFK Consumer Confidence
UK Retail Sales
Investment Tip of The Day
Stay mindful of behavioral biases Awareness of behavioral biases can help you make better investment decisions. Common biases include loss aversion, confirmation bias, and herd mentality. Regularly reflect on your decision-making process and be mindful of these biases.
Meme of the Day
