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Market Data
Local
Global
*Data as of 6pm WAT
Market News
Local
NNPCL, partners to add 192,000bpd to crude production – Punch
The Nigerian National Petroleum Company and its partners aim to increase Nigeria's oil production by 192,000 barrels per day from Q3 2023 to Q1 2024. The company plans to resume production activities in various Oil Mining Licences, expecting to boost oil earnings for the country.57.96 million BVN issued as CBN threatens accounts closure - Punch
The total number of Bank Verification Numbers in Nigeria has reached 57.96 million, providing enhanced security and protecting bank accounts from unauthorized access.
Global
Inflation eased to 3% in June, slowest pace in two years - WSJ
US inflation slowed to 3% in June, driven by lower energy and food prices. Core inflation remained elevated at 2.3%. The Fed will closely monitor inflation before deciding on tapering bond purchases. The long-term trend is uncertain.Gap in borrowing costs between developed and emerging markets hit a 16-year low - Financial Times
The gap between borrowing costs in developed and emerging markets has hit a 16-year low due to rising rates in developed markets and expected rate cuts in emerging markets, benefiting emerging market borrowers.Fund titans are betting everything against the dollar - Bloomberg
Hedge funds anticipate a weaker US dollar and are betting on various currencies, including those of Japan, China, and the eurozone. Factors contributing to this outlook include the expected slowdown in US economic growth, influenced by the trade war with China, and rising interest rates in other countries aiming to combat inflation.
Mexico surpassed China as the top US trading partner - Axios
Mexico has become the top trading partner of the United States, surpassing China, driven by rising US-China tensions and Mexico's economic growth. The trade war caused a decline in US-China trade, while the Mexican economy outpaced China's
Elon Musk takes aim at OpenAI with xAI launch - Reuters
Elon Musk's new AI startup, xAI, launched its website, aiming to develop AI that understands the universe's true nature. Separate from OpenAI, xAI has attracted experienced engineers and researchers in the San Francisco Bay Area. Musk sees AI as a transformative technology with the power to revolutionize various aspects of life.
Bank of Korea holds rates, to keep policy restrictive - Reuters
The Bank of Korea (BOK) has kept its policy rate unchanged at 3.50%, prioritizing tight monetary policy due to high prices and financial uncertainty. The decision reflects concerns about inflation while considering the economy's response to higher interest rates.
Markets welcomed yesterday’s print with open arms.
Treasury yields dropped sharply across all durations as hike expectations diminished.
The DXY—which measures the US dollar against a basket of currencies—fell to its lowest in 15 months.
Stocks saw a broad rally with all sectors but Industrials and Healthcare advancing.
The S&P 500 and Nasdaq both notched new 52-week highs and closed at their highest levels since April 2022.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
The Reserve Bank of New Zealand held rates steady as expected at 5.5%
Japan’s Core machinery orders fell 7.6% m/m in May, notably weaker than expectations of a 1.0% rise and falling back from 5.5% growth in the previous month.
In a speech, RBA Governor Lowe said it remains to be determined whether more rate hikes are needed, though this will depend on the evolution of the economy and inflation.
Chinese auto sales grew 9.8% in the first half, helped by a low base
Thai Court to decide if PM candidate Pita should be disqualified as a lawmaker in blow to democratic parties.
China lending is stronger than expected with new loans increasing to CNY3.05T in June, above consensus, CNY2.34T and following CNY1.36T in the previous month.
Europe, Middle East, Africa
Previews for the Q2 reporting season broadly expect it to be mixed. Refinitiv data forecasts Q2 Stoxx 600 earnings to decrease 8.3% from Q2'22, but ex-Energy sector, earnings are seen increasing by 4.4%.
Italy to request more post-COVID funds from EU despite payment delay
BoE Governor Bailey Bailey appeared to signal more rate hikes at the Financial Stability press conference.
The Americas
Judge’s ruling that Microsoft can close Activision deal could spur more M&A
Global PC shipments fell 12% in Q2, an improvement from the 30% decline in the past two quarters
Disney exploring options to sell or find a joint venture partner for its India digital and TV business
US consumers planning double-digit cuts to their budgets for back-to-school supplies
Businesses are starting to cut workers’ hours, forcing hundreds of thousands of people into part-time roles, in what could be an early warning sign for the economy.
The Week Ahead:
Wednesday:
US Consumer price index - 3.00%
US Core CPI
Thursday:
US Initial jobless claims.
US Producer price index.
US Federal budget.
Friday:
US Consumer Sentiment.
Investment Tip of The Day
Assess the historical performance, financial stability, and growth potential of a company before investing in its stocks. Conduct thorough fundamental analysis and evaluate key metrics such as revenue, earnings, and debt levels.
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