Trading Tuesday
Ranora Daily - Your daily source for reliable market analysis and news.
Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
Job losses in Nigeria’s manufacturing sector spikes to 3-yr high - BNR
Job losses in Nigeria's manufacturing sector have reached a three-year high, reflecting ongoing economic challenges. The sector has faced numerous headwinds, including rising costs and inadequate power supply, which have impacted production and employment. Persistent job losses could have wider implications for the country's economy and employment landscape.
IMF downgrades growth prospects for Nigeria to 2.9% - BNR
The IMF has downgraded its growth prospects for Nigeria to 2.9%. This revision is attributed to economic challenges and uncertainties, including the impact of the COVID-19 pandemic, declining oil prices, and security concerns. The lowered growth forecast underscores the need for Nigeria to address these issues to stimulate economic recovery and development.
Global
IMF hikes U.S. growth forecast for 2023 - CNBC
The International Monetary Fund (IMF) has updated its World Economic Outlook, increasing its growth projection for the U.S. while predicting slower expansion for the euro zone. The IMF raised its U.S. growth forecast for this year to 2.1% and for next year to 1.5%, attributing it to strong business investment, resilient consumption growth, and fiscal stimulus.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities were mostly trading higher on Tuesday. Japan was a notable outperformer, set to close at a five-day high, while Australia’s ASX continued its upward trajectory for the fourth consecutive session. Greater China, on the other hand, was mixed, with mainland markets facing struggles, while Hong Kong was trading higher. The Kospi in South Korea was slightly lower, but the rest of the region was showing gains. Taiwan’s market remained closed.
China’s property market faced more negative news as property developer Country Garden issued warnings that they might experience their first-ever default and restructuring.
There was news from China suggesting that the government may inject an additional $137 billion in fiscal stimulus to boost economic growth. This development lifted market sentiment, and Australian markets also received a boost from this news.
Europe, Middle East, Africa:
European equity markets were firmer, following stronger trading in Asia earlier in the day and positive performance in U.S. equities the previous day.
While there is ongoing conflict in the Middle East, it remains contained for now. Stock markets in the Middle East closed lower the previous day, including in Saudi Arabia, the UAE, and Egypt.
Retail sales in the UK slowed down in September. According to an update from the British Retail Consortium (BRC), total sales were up 2.7% compared to a 4.1% increase in August.
Food price inflation in the UK was reported to be at its lowest level since July 2022. In the four weeks leading up to October 1st, annual grocery inflation stood at 11%, down from 12.2% as reported in September.
The Americas:
Dovish comments from the Federal Reserve are contributing to a risk-on sentiment. Fed members discussed how the surge in yields had already caused sufficient tightening in financial conditions, suggesting that further tightening from the Fed might not be necessary. This led to a decline in yields the previous day. Today, we have speeches from Fed officials Waller, Daly, and Kashkari.
Trian, an investment firm, has increased its stake in Disney to $2.5 billion and plans to revive its campaign for board seats.
PepsiCo reported its Q3 core earnings per share (EPS) at $2.25, beating FactSet’s estimate of $2.15. The company’s revenue for the quarter was $23.45 billion, slightly exceeding FactSet’s expectation of $23.41 billion. PepsiCo maintained its guidance for the fiscal year, anticipating organic revenue growth of 10% and core constant currency EPS growth of 13%, despite the expectation of a negative impact from a stronger USD, which is estimated at -2%.
The Week Ahead:
Monday:
Tuesday:
Wednesday:
Producer Price Index (PPI) (US)
Thursday:
Gross Domestic Product (GDP) (UK)
Consumer Price Index (CPI) (US)
Unemployment Claims (US)
Friday:
UoM Consumer Sentiment (US)
Investment Tip of The Day
Monitor Margin Levels: If you use margin accounts for leverage, closely monitor your margin levels. Excessive borrowing can magnify losses and lead to margin calls, potentially forcing you to sell assets at unfavorable prices.
Meme of the Day
