Trading Tuesday
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Market Data
Local
Global
*Data as of 6pm WAT
Market News
Local
Discos backtrack on tariff hike, await NERC approval - Punch
Power distribution companies, on Monday, backtracked on their earlier announcement of a tariff hike projected to take effect from July 1, 2023, as they stated that the Nigerian Electricity Regulatory Commission had yet to approve the hike.World Bank okays fresh $500m loan for FG - Punch
The World Bank Group has approved a loan of $500m to help Nigeria drive women’s empowerment, The PUNCH has learnt. This became the second loan approved by the World Bank under the new President, Bola Tinubu.FMDQ Set To Go Live with its Exchange-Traded Derivatives - Market Forces
FMDQ Securities Exchange Limited, with the support of the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), FMDQ Clear Limited, and key market participants, is set to provide a long-awaited panacea to the Nigerian financial markets, with the introduction of its dynamic Exchange-Traded Derivatives (ETD) market.
Global
US to spend $42B to make internet access universal by 2030 - Reuters
The White House on Monday divvied up $42 billion among the nation's 50 states and U.S. territories to make access to high-speed broadband universal by 2030, as it launched a new publicity campaign for President Joe Biden's economic policies.
New York could become the latest state to ban noncompetes - AXIOS
New York could become the latest state in the U.S. to ban noncompete agreements. A bill passed the state's Assembly earlier this week and is now on the governor's desk.
S&P cuts China GDP forecast as calls for stimulus intensify - Reuters
S&P Global cut its forecast for China's economic growth this year, underscoring the uneven nature of the country's recovery from the pandemic which is spurring calls for further stimulus.
When stocks rise, the VIX falls, and vice versa…right?
That long-held rule of thumb has been put to the test over recent weeks as the VIX has hovered well below its long-term average of ~20 even as stocks have rallied.
In fact, the typically negative correlation between the two has flipped to an extreme.
Over the last 10 days ending Friday, the correlation between the S&P 500 and VIX reached +0.61, a level not seen in 30+ years.
Which one gives first?
Investors are beginning to abandon the idea of rate cuts in 2023.
They aren’t, however, fully embracing the Fed’s latest dot-plot forecast as traders are still currently pricing in a peak after just one more 25bps hike.
Interest rate traders place a 77% chance on a 25bps raise to 525-550 in July but see rates staying there through year’s end.
By January, traders expect the target rate to be at 500-525, which implies a 25 bps cut.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
Chinese Premier Li Qiang said China is still on track to hit its annual growth target of around 5% and Q2 growth is expected to be faster than Q1.
PBOC set its daily yuan reference at a stronger-than-expected level for a second day. The onshore yuan rate was set at 7.2098 per dollar, 111 pips stronger than the Bloomberg estimate.
Baidu says its ChatGPT-style service has outperformed OpenAI's on key measures
The consumer-led slowdown in Australia gathering pace following trading updates from discretionary retailers over the past month that highlighted a sharp drop in demand.
Europe, Middle East, Africa
ECB's Lagarde says rate hike pauses possible in coming months, but the end of cycle not near
BoE saw implementing two more 25 bp rate hikes in coming meetings; will likely tip the UK into recession
Volkswagen cuts EV production at Emden citing weak demand
The UK government announced it will sign a cooperation pact with the EU in financial services
The Americas
Robinhood to lay off 7% of workforce amid a decline in trading activity
Blackstone considering offers for half its interest in the real estate of Bellagio Hotel, reported by Bloomberg. This comes after news of Blackstone selling industrial properties to Prologis.
Quarter-end rebalancing could drive outsized equity selling
Google axes development of Iris augmented-reality glasses - Business Insider, citing people familiar with the matter
Delta Airlines raises guidance ahead of an investor day.
The Week Ahead:
U.S Economic Events
Tuesday
9:00 am S&P Case-Shiller home price index (20 cities)
10:00 am New home sales
10:00 am Consumer confidence
Wednesday
8:30 am Advanced U.S. trade balance in goods
9:30 am Fed Chair Powell speaks
Thursday
2:30 am Fed Chair Powell speaks
8:30 am Initial jobless claims
10:00 am Pending home sales
Friday
8:30 am PCE index
8:30 am Core PCE index
8:30 am PCE (year-over-year)
8:30 am Core PCE (year-over-year)
9:45 am Chicago Business Barometer
10:00 am Consumer sentiment (final)
Investment Tip of The Day
Monitor your investment performance. Regularly monitor the performance of your investments and assess whether they are meeting your expectations. If certain investments consistently underperform or no longer align with your goals, consider making adjustments.
Meme of the Day
