Trading Thursday
Ranora Daily - Your daily source for reliable market analysis and news.
Market Data
Local
Global
*Data as of 6pm WAT
Market News
Local
Shareholders excited as Otedola becomes FBN Holdings chair - Punch
FBN Holdings has appointed billionaire businessman, Femi Otedola, as the new chairman of its Board of Directors to succeed Ahmad Abdullahi.
CBN orders banks to sell excess dollars in 24 hours - Punch
Amid its fresh moves to stabilise the nation’s volatile exchange rate, the Central Bank of Nigeria has ordered Deposit Money Banks to sell their excess dollar stock latest February 1, 2024.
P’Harcourt refinery test-run ongoing, marketers project fuel price hike - Punch
The Federal Government, on Wednesday, said the Port Harcourt Refining Company was still being test-run, adding that refined petroleum products from the plant would hit the market soon.
Global
BoE holds interest rates at 5.25% - Financial Times
BoE holds rates at 5.25% but opens door to cuts, needing more evidence inflation will stay low. While headline inflation fell to 4%, service prices remain high and energy price decline temporary. Bank expects inflation to return to 2% target only in Q2 2024, then rise again. Market predicts 4 rate cuts this year, first potentially in May.
Market Commentary:
Asia and Australia:
Indian shares closed slightly lower in a choppy session influenced by Fed Chair Jerome Powell's hawkish tone on early rate cuts and the interim budget statement presented in Parliament months ahead of Lok Sabha elections.
Global cues were mixed as the Federal Reserve tempered hopes for a rate cut in March, citing 'elevated' inflation.
India's manufacturing growth reached a four-month high in January, but eight key infrastructure sectors' growth slowed to a 14-month low of 3.8 percent in December 2023.
The Interim Budget, meeting expectations, revealed fiscal deficit numbers of 5.8 percent in revised estimates for FY24 and 5.1 percent for FY25, better than optimistic expectations.
The S&P BSE Sensex ended down 106.81 points, or 0.15 percent, at 71,645.30, reversing early gains, while the NSE Nifty settled 28.25 points, or 0.13 percent, lower at 21,697.45.
JSW Steel, Dr Reddy's Laboratories, UltraTech Cement, Larsen & Toubro, and Grasim fell 2-3 percent, while Maruti Suzuki soared 4.1 percent after robust Q3 results.
Europe, Middle East, and Africa:
Major European markets closed lower amid uncertainty about near-term interest rates and mixed economic data. Bank of England signaled possible rate cuts, and the Federal Reserve deemed a rate cut in March unlikely.
Economic data showed British factory activity deteriorated, Euro area manufacturing downturn slowed, and Eurozone inflation weakened in January.
The pan European Stoxx 600 ended down 0.37%, with the UK's FTSE 100 down 0.11%, Germany's DAX down 0.26%, and France's CAC 40 down 0.89%.
The Bank of England left the policy rate steady but opened the door for rate cuts. Sweden's central bank suggested a rate cut might be possible in H1 2024.
In the UK market, Ocado Group and 3i lost over 5%, while Associated British Foods, Fresenillo, Smurfit Kappa Group, BT, Natwest Group, and Melrose Industries ended down 2 to 3%.
Land Securities, Next, Aviva, Marks & Spencer, and Barclays Group lost nearly 2%, while Segro, Tesco, Centrica, Prudential, Compass Group, Kingfisher, Scottish Mortgage, and Anglo American also ended sharply lower.
The Americas:
Stocks moved mostly higher in early trading but gave background later in the session. The Dow is up 0.1%, the Nasdaq is up 0.4%, and the S&P 500 is up 0.3%.
The early strength followed Wednesday's sell-off, with optimism that markets will resume the upward trend seen throughout much of January.
Federal Reserve signals suggested an interest rate cut in March is unlikely, but economists believe it's a matter of "when, not if." CME Group's FedWatch Tool indicates a 44.5% chance of a March rate cut.
Gold stocks surged, with the NYSE Arca Gold Bugs Index up 3.1%, driven by an increase in the price of gold.
Computer hardware stocks showed strength, with the NYSE Arca Computer Hardware Index gaining 1.4%. In contrast, banking stocks extended the sell-off, dragging the KBW Bank Index down by 3.2%.
The Week Ahead:
Monday:
Tuesday:
US CB Consumer Confidence rose in January to 114.8
US JOLTS Job Openings surged by 101,000 from the previous month to 9.026 million
Wednesday:
US ADP Non-Farm Employment Change increased by 107,000 jobs in January
Employment Cost Index q/q increased 0.9 percent
US Federal Funds Rate remain steady at 5.25%-5.50%
Thursday:
US initial jobless claims up by 9,000 to 224,000
US ISM Manufacturing PMI rises to 49.1% in January
US job cuts up at 82,307 in January
Friday:
Average Hourly Earnings m/m (US)
Non-Farm Employment Change (US)
Unemployment Rate (US)
Revised UoM Consumer Sentiment (US)
Investment Tip of The Day
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