Trading Tuesday
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Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
Zenith Bank signs MoU to establish subsidiary in France - Punch
Zenith Bank Plc has signed a Memorandum of Understanding with the French Government to establish a subsidiary in France.
Tinubu presents budget Wednesday, FEC okays $1bn loan - Punch
President Bola Tinubu will on Wednesday present the 2024 Appropriation Bill to a joint session of the National Assembly.
Global
US annual home price growth at 6.1% in September, FHFA - Reuters
U.S. home prices increased for a sixth consecutive month in September, rising 6.1% from a year ago, according to the Federal Housing Finance Agency. This is up from an upwardly revised 5.8% increase in August. On a quarterly basis, home prices rose 5.5% between the third quarter of last year and the third quarter of this year.
Oil rises, Brent tops $80 ahead of OPEC+ meeting - Reuters
Oil prices rose on Tuesday as the possibility that OPEC+ will extend or deepen supply cuts was compounded by a storm-related drop in Kazakh oil output to send the Brent benchmark above $80 a barrel. Brent crude futures were up 73 cents, or nearly 1%, at $80.71 a barrel by 1506 GMT. U.S. West Texas Intermediate (WTI) crude gained 74 cents, or roughly 1%, to $75.60.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities finished mixed on Tuesday. Technology stocks weighed on the Hang Seng, while mainland China benchmarks rose slightly. Gains were seen in Australia and Taiwan, and South Korea rose as battery companies gained. India remained flat despite a rally in Adani stocks, Southeast Asia was mixed, and Japan’s indices fell as the yen strengthened.
Australian October retail sales unexpectedly fell by 0.2% on a monthly basis, contrary to the anticipated 0.1% rise. This downturn, marking the first drop in retail activity since June, reflects a shift in consumer behavior, with shoppers reducing discretionary spending and waiting for Black Friday sales events.
Adani group stocks surged after India’s Supreme Court concluded its hearing into the plunge in group stocks earlier this year, reserving judgment on a batch of petitions connected to the market regulator’s probe. India’s Securities and Exchange Board told the court it would not seek additional time to complete the investigation.
Chinese banks are estimated to reserve $89B for bad loans in the property sector next year. The PBOC’s push to provide further support to the sector has led to pressure on banks to lower their lending rates.
New Zealand’s rate decision is expected to remain unchanged at 5.5%, given that inflation has come down faster than expected.
South Korea’s consumer confidence is gradually trending downwards, with concerns about near-term living standards and expenses.
Europe, Middle East, Africa:
European equity markets were lower, with decliners in Health Care (-1.2%), Personal and Household (-1.2%), and Food & Beverages (-1.0%). The UK’s FTSE also saw losses.
German GfK consumer confidence showed a slight improvement but remained in negative territory at -27.8 from -28.3.
Eurozone M3 money supply growth continued to contract, down 1.0% y/y in October versus 0.9% consensus and a prior 1.2% fall.
The annual rate of credit to euro area residents was down 0.5%, unchanged from the prior month. The slowdown in credit growth is considered an effective measure of the transmission of monetary policy.
Loans to the private sector were up 0.4%, while loans to businesses decreased by -0.3%.
The Americas
New home sales came in at 679K vs. 723K estimates, with months’ supply at 7.8 vs. 6.9 prior. The median home price continued to drop to $403k vs. $487k prior, indicating signs of moderation in the US housing market.
Bond Auctions: The 2Y auction results were weaker than the 5Y auction results, contrary to expectations. This may be surprising, considering most MMFs are still buying at the shorter end, and with the anticipation of Fed cuts on the horizon, the 2Y was expected to perform better.
The Week Ahead:
Monday:
Tuesday:
US CB Consumer Confidence increased in November to 102.0
Wednesday:
Prelim GDP q/q (US)
Thursday:
Core PCE Price Index m/m (US)
Unemployment Claims (US)
Friday:
ISM Manufacturing PMI (US)
Investment Tip of The Day
Stay Informed About Trade Policies: Global trade policies can impact various industries. Monitor changes in trade agreements and tariffs that may affect companies in your portfolio.
Meme of the Day
