Think Thursday
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Market Data
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Global
*Data as of 4pm WAT
Market News
Local
Wema Bank signs $50million facility with ECOWAS Bank - Daily Trust - Daily Trust
Nigeria’s foremost financial institution and leading innovator, Wema Bank, has signed a credit facility of $50m with the ECOWAS Bank for Investment and Development (EBID)
Senate passes MTEF, to probe tax waivers under Buhari - Punch
The Upper legislative Chamber also sought stiff punishments, including jail terms for violators, of finance laws.
OPEC+ postpones policy meeting to November 30 - Punch
This was disclosed on Wednesday by the Vienna-based agency of the Petroleum Exporting Countries on its website.
Global
US consumer sentiment drops again on inflation fears - Yahoo Finance
Inflation expectations among Americans are rising despite recent declines in the consumer price index. Consumers now expect inflation to reach 4.5% over the next year and 3.2% over the next five years, up from 4.2% and 3.0% respectively in October. This increase in expectations comes as the Federal Reserve continues to raise interest rates in an effort to curb inflation.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities concluded mixed on Thursday with decreased volumes. Hong Kong rallied in the afternoon, and mainland stocks were supported throughout the day, providing more support for property stocks. Australia ended lower with mining stocks under pressure. Seoul and Taipei remained flat, India was directionless, and Southeast Asia saw some volatility as Indonesia surged while Thailand sold off. Japan was closed for a holiday.
Rate cut bets in China are ruled out for the rest of the year. Survey results indicate that the 1-year MLF will be held at 4.5% until Q1; 1-year LPR at 3.45% until Q2; and 5Y LPR at 4.2% until next year. The PBoC has been actively defending the Yuan, and cutting rates could weaken the currency and pressure net interest margins for banks.
Chinese regulators are considering allowing banks to issue “unsecured” working capital loans to qualified developers for day-to-day operations.
Bank Indonesia held the base 7D reverse repo rate steady at 6.0%, surprising some, as it continues to address slowing economic growth and a fragile rupiah.
Europe, Middle East, Africa:
European equity markets were firmer after finishing mostly higher on Wednesday. Oil/gas, basic resources, and financial services were the best performers, while telecom and travel/leisure lagged.
Risksbank surprised by holding rates steady at 4%, contrary to market expectations of a 25bps hike.
Turkey surprised with a larger-than-expected hike, increasing rates by 5% instead of 2.5%. The bank rate now stands at 40%, acknowledging a moderation in domestic demand and improvement in pricing behavior.
Norway’s final GDP number for Q3 remained unchanged at -0.5%, missing expectations for an upward revision to 0.3%. The GDP growth took a hit due to a reduction in petroleum activity and fixed investments.
Flash PMIs for Europe showed mixed results, with the Eurozone and Germany seeing improvements in both manufacturing and services PMIs, while France and the UK showed mixed trends in their respective PMIs. The UK services PMI moved into expansionary territory at 50.5 from 49.5.
The Week Ahead:
Monday:
Tuesday:
Wednesday:
US initial jobless claims down 22,000 to 209,000
US Revised UoM Consumer Sentiment declined 2.5 percentage points to 61.3 in November, from 63.8 in October
Thursday:
Eurozone composite PMI up to 47.1 in November
UK Flash Services PMI rose to 49.5 in November of 2023 from 49.3 in the previous month
Friday:
Flash Services PMI (US)
Flash Manufacturing PMI (UK)
Investment Tip of The Day
Stay Informed About Exchange Rate Policies: Closely monitor changes in exchange rate policies, particularly those implemented by central banks and governments. Shifts in these policies can significantly influence currency values, affecting the returns and risks associated with international investments.
Meme of the Day
