Trading Thursday
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Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
$6bn facility: UBA to finance agro-processing SMEs - Punch
The United Bank for Africa Plc has said that it is looking to support Small and Medium Scale Enterprises in four sectors including Agro-processing, Automotive, pharmaceuticals, Transport and Logistics with the $6bn facility from the Africa Continental Free Trade Area Secretariat.
World Bank disburses $300m palliative loans - Punch
The World Bank has commenced payment of the $800m approved for the National Social Safety Net Program-Scale Up.
Nigeria to import 2.1 million metric tons of rice, become top buyer globally in 2024 – USDA - Nairametrics
Nigeria is projected to import 2.1 million metric tons of rice in 2024, which may make the country the top rice buyer globally.
Anxiety as MTN Nigeria considers stake in 9mobile - The Guardian
Indications emerged yesterday that MTN Nigeria is seriously eyeing stakes in its competitor, 9mobile.
Global
‘Fed-Friendly’ Data Lift Bonds as Stocks Struggle: Markets Wrap - Bloomberg
Treasuries climbed after the latest economic figures underscored a gradual slowdown, reinforcing speculation the Federal Reserve will end its most-aggressive hiking campaign in decades.
The Global Fight Against Inflation Has Turned a Corner - The WallStreet Journal
Falling inflation across industrialized countries has opened the door for central banks to start cutting interest rates next year.
Ethiopia has reached an interim agreement with bilateral creditors to suspend debt payments, providing economic relief amid challenges from the civil war. This includes initiating talks to restructure a $1 billion Eurobond due next year. China has agreed to pause repayments, and Ethiopia is also seeking support from the International Monetary Fund (IMF). The suspension aims to ease economic pressures through 2023 and 2024, aligning with anticipated IMF program years. Ethiopia is using the G20's Common Framework for debt renegotiation, following Zambia and Ghana's examples. The Eurobond's yield rose significantly, indicating market volatility, but Ethiopia is not in default. Originally, Ethiopia sought debt restructuring in 2021 under the Common Framework due to COVID-19 and civil war impacts. The country's external debt exceeded $28 billion as of March, with significant loans from Chinese lenders. Bondholders proposed extending the 2024 bond's maturity to 2029 or 2030 to avoid lump-sum payments.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities are mixed, with marginal gains in Japan, India, and South Korea, but a pullback in Australia. The most significant declines are in China (-0.7%) and Hong Kong (-1.4%).
China experiences a pullback, possibly due to Home Price Data, showing a faster pace of decline in October's new home prices, the quickest in 8 months, affecting 56 out of 70 cities.
Australia reports a higher-than-expected employment rise of 55.0K in October, while the unemployment rate reached 3.7%, in line with the RBA's year-end forecast.
Japan's data is mixed, with lower-than-expected YoY exports at +1.6%, improved imports at -12.5%, unexpected growth in Machinery Orders at -2.2% YoY, and a better-than-expected Trade Balance.
China:
The People's Bank of China set the Yuan reference rate at 7.1724, the strongest CNY fix since September 27th.
Alibaba beats expectations, reporting Q2 earnings of RMB 15.63 per share, with an 8.5% YoY increase in revenues to RMB 224.79 billion. The company announced its first annual dividend distribution for FY 2023, approximating $2.5 billion.
Europe, Middle East, Africa:
European equity markets are mostly lower, with the DAX outperforming. Utilities and Real Estate sectors are gainers, while Oil and gas, Personal and household Goods, and Basic Resources are among the decliners.
Burberry reports lower-than-expected results and lower guidance, citing a challenging macro environment, especially in China, with a notable decline in demand in September.
UK interest rate expectations shift, with money markets now pricing in the possibility of the first Bank of England rate cut as early as March, following a marked slowdown in headline inflation.
The Americas:
Total US retail sales declined 0.1% MoM in October, with a 0.1% increase excluding autos, signaling a weakening demand for goods.
US PPI for final demand decreases -0.5% MoM and is up just 1.3% YoY, providing welcome news for inflation and Fed policy. Excluding food and energy, the index for final demand remains unchanged MoM and up 2.4% YoY.
Walmart reports marginal earnings beat in Q3, with $1.53 EPS versus $1.52 FactSet estimate and revenue of $160.8 billion versus $159.65 billion FactSet estimate. The company forecasts FY24 EPS at $6.40-6.48, slightly lower than the $6.50 estimate, leading to a decline in shares.
The Week Ahead:
Monday:
Tuesday:
U.S. inflation slows to 3.2% in October
Eurozone's GDP declines by 0.1% in Q3
US mortgage applications up 2.8%
Wednesday:
UK producer prices up by 0.1% in October
UK inflation down to 4.6% in October
Core PPI m/m (US)
Core Retail Sales m/m (US)
Empire State Manufacturing Index (US)
Thursday:
Unemployment Claims (US) fell to 192,000
Friday:
Retail Sales m/m (UK)
Investment Tip of The Day
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Meme of the Day
