Trading Tuesday
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Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
Nigeria wins $11bn P&ID case in UK court - The Guardian
The Federal Government of Nigeria on Monday finally emerged victorious in its legal case against Process & Industrial Developments (P&ID) Limited in a United Kingdom (UK) court.
FG plans $10bn to stabilise naira, eyes NNPCL for forex - Punch
President Bola Tinubu has assured Nigerians and investors that there is an ongoing plan to boost the country’s foreign exchange liquidity.
Global
Oil drops over 2% as diplomatic moves in Gaza war ease supply concerns - Reuters
Oil prices fell over 2% on Monday as diplomatic efforts in the Middle East intensified in an attempt to contain the conflict between Israel and Hamas, easing investor concerns about potential supply disruptions.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities finished mainly higher on Tuesday after a temporary dip earlier in the day.
Hong Kong marked to market from its holiday but still ended off its lows. Mainland benchmarks finished higher, although the Shanghai Composite failed to recover its 3,000 level.
China's President Xi Jinping made a notable visit to the People's Bank of China (PBOC), signaling the government's commitment to supporting the economy and financial markets. Xi visited the PBOC, the State Administration of Foreign Exchange, and the nation's sovereign wealth fund.
The Bank of Japan (BOJ) conducted an unscheduled Japanese Government Bond (JGB) purchase operation, including JPY 300 billion in 5-10 year JGBs and JPY 100 billion in 10-25 year JGBs. This marked the fifth ad-hoc move since July when the Yield Curve Control (YCC) policy was adjusted.
South Korea's Producer Price Index (PPI) data showed a month-on-month (MoM) slowdown from 0.9% to 0.4%. However, on a year-on-year (YoY) basis, PPI increased from 1% to 1.3% in September. This was the sharpest increase in factory gate prices since April 2023, driven by higher service costs (2.2% vs. 2.1% in August), while prices fell at a slower pace for manufacturing products (-0.7% vs. -1.5%).
In her first speech Reserve Bank of Australia (RBA) Governor, Michele Bullock stated that she would not hesitate to raise the cash rate further if there is a material upward revision to the outlook for inflation. She highlighted the risks that could see inflation return to target more slowly than currently forecast.
Europe, Middle East, Africa:
European equity markets were mostly higher after recovering from earlier lows.
The Eurozone composite Purchasing Managers' Index (PMI) had its lowest reading in three years. This was driven by both manufacturing and services PMIs. Manufacturing PMI came in at 43.0, falling short of the expected 43.7, while services PMI was at 47.8, lower than the expected 48.6. These readings are raising concerns about a potential recession or two consecutive quarters of negative GDP growth. Consequently, the European Central Bank (ECB) is expected to pause interest rate hikes at its upcoming meeting.
Germany's lower composite PMI was largely due to services PMI dropping back into contractionary territory. Weak backlogs were reported, but factory activity decline has slowed. In contrast, France posted a marginally higher composite PMI due to improving services PMI. Manufacturing PMIs for France came in lower, signaling flat GDP growth.
UK jobless claims increased, indicating further signs of weakness in the labor market. UK's claimant count rose by 20.4K, surpassing consensus expectations of 2.3K, and the prior month's 9.0K increase was revised up from the initially reported 0.9 K. The unemployment rate increased to 4.2%, a 0.2% increase on a quarterly basis.
German GfK consumer confidence continued to show weakness with a reading for November at -28.1, compared to consensus expectations of -26.6. Underlying details showed stabilization in expectations for the economic outlook with a slight increase noted. However, income expectations fell by 4 points to -15.3, with rising food and energy prices squeezing household purchasing power and dampening appetite to buy.
The Americas:
Mexico's activity data for August 2023 exceeded market expectations, growing by 3.7% year-on-year, accelerating from the 3.2% expansion in the previous month.
Deutsche Bank noted that its measure of aggregate equity positioning has edged lower to below neutral again (z-score -0.15, 34th percentile). Both discretionary investor positioning and systematic strategies positioning declined slightly and are slightly below neutral.
Verizon Communications reported a double beat for Q3 earnings, with EPS at $1.22 ex-items compared to the FactSet estimate of $1.18. Revenue came in at $33.3 billion, exceeding the FactSet estimate of $33.27 billion. Verizon also reaffirmed its earnings per share (EPS) and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance and improved its free cash flow guidance by $1 billion to above $18 billion. Additionally, Verizon reaffirmed its total wireless service revenue growth guidance of 2.5% to 4.5%.
RTX Corp. reported Q3 earnings per share of $1.25 ex-items, beating the FactSet estimate of $1.22. Revenue reached $18.95 billion ex-items, surpassing the FactSet estimate of $18.60 billion. RTX Corp. also announced that it has entered into a definitive agreement to sell its Cybersecurity, Intelligence, and Services business within its Raytheon segment for $1.3 billion. The company has also accelerated its $10 billion share buyback program.
Coca-Cola reported Q3 comparable earnings per share of $0.74, beating the FactSet estimate of $0.69. Revenue amounted to $11.95 billion, exceeding the FactSet estimate of $11.44 billion. The company reported that price/mix grew 9%, primarily driven by pricing actions in the marketplace, and improved its organic growth revenue guidance to 10%-11% from the earlier guidance of 8%-9%.
General Motors reported Q3 adjusted earnings per share of $2.28, surpassing the FactSet estimate of $1.87. Revenue for the quarter was $44.13 billion, exceeding the FactSet estimate of $42.48 billion. General Motors withdrew its financial guidance for 2023 and guidance for near-term electric production.
The Week Ahead:
Monday:
Tuesday:
Flash Manufacturing PMI (US)
Wednesday:
UK Consumer Price Index YoY is at 6.70%
Thursday:
Advance GDP (US)
Unemployment Claims (US)
Friday:
Core PCE Price Index m/m (US)
Revised UoM Consumer Sentiment
Investment Tip of The Day
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Meme of the Day
