Trading Tuesday
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Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
Fuel hike: NLC threatens fresh strike - Punch
Organized Labour threatens nationwide shutdown if petrol price surpasses 617 naira, denouncing it as "illegal". NLC President Joe Ajaero issued the warning, stressing unity against undermining labor's demands amidst looming price increase.MasterCard gets stake in MTN’s $5.2 billion Fintech Business - The Guardian
MTN to sell fintech stake to Mastercard, aiming to raise funds through asset sales and financial services growth. MTN's H1 earnings reveal an MoU for a minority investment, valuing the fintech business at around $5.2 billion.
Fuel imports to Nigeria fell to 106,000 bpd in July from 205,200 bpd in May 2023 - Naira Metrics
The volume of fuel imported into Nigeria fell by 29.2% in May 2023 to 106,000 barrels per day, the lowest level since January 2020. This was due to a combination of factors, including the rise in crude oil prices, the availability of cheaper alternatives, and the government's efforts to reduce fuel subsidies.
CBN clamps down on speculators, restricts diaspora remittances - Punch
The Central Bank of Nigeria has imposed new restrictions on foreign currency transactions in an effort to stabilize the naira, which has been in free fall in recent weeks. The CBN has limited the amount of foreign currency that can be sold to Bureau de Change operators and has directed banks to verify the source of all foreign currency transactions.
Marketers stall petrol importation over forex unavailability – The Nation
Oil marketers' forex shortages halt petrol importation, relying on old stock due to lack of forex availability. I & E Window's low forex rate leads to suspension of importation, raising ex-depot prices to N600 per litre.
LCCI Establishes ECOWAS/AFCFTA Regional Integration Trade Committee - Leadership
LCCI forms ECOWAS/AfCFTA Integration Committee to enhance regional trade and investment, focusing on peace, stability, and governance. President Olawale-Cole emphasizes private-public collaboration for African continent's growth and benefits.
Nigeria's JULY’S INFLATION HIGHLIGHTS
Headline inflation increased to 24.08% YoY in July 2023; 1.29% higher than 22.79% recorded in June 2023.
On a monthly basis, the headline index was up by 2.89% in July, up by 76bps relative to the 2.13% MoM increase recorded in June.
Food inflation inched up by 26.98% YoY in July 2023; 1.73% higher than 25.25% recorded in June 2023.
Core inflation printed at 20.47% YoY in July 2023; 0.41% higher than 20.06% recorded in June 2023.
Global
US Steel (X) receives all cash off from Esmark Inc - $35 a share - Business Wire
Esmark Inc. has unveiled an all-cash public offer for shares of U.S. Steel, aiming to acquire the company. The move signals Esmark's intention to enter the steel industry through a strategic acquisition, as it seeks to enhance its position in the market. The offer is part of Esmark's strategic growth plans and represents a significant development in the steel sector.
China has cut interest rates and will stop reporting its youth unemployment rate - WSJ
China has reduced lending rates and suspended youth jobless data as its economy shows a more pronounced downturn. This move aims to stabilize the economy amid concerns of weakening growth due to global economic shifts.
Russia raises interest rates to halt collapse in rouble - Financial Times
Russia's central bank raised its key interest rate to 12% to counter the ruble's decline caused by economic sanctions following the Ukraine invasion. This marks the third rate hike in two weeks and the highest since 2000. The move aims to protect the ruble's exchange rate, control inflation, and slow down the economy to stabilize the currency's value.
Weekly Investment Watchlist
Market Commentary
Asia and Australia:
Asian equities ended Tuesday mixed. Greater China markets experienced another volatile day, and all main benchmarks closed lower after PBOC’s action and weak July economic data.
The PBOC surprised with a 15 basis point cut to the 1-year Medium-term Lending Facility (MLF) rate, bringing it to 2.50%. The 7-day reverse repo rate was also lowered by 10 basis points to 1.8%.
China’s industrial production rose 3.7% YoY in July, lower than both consensus and the previous month. Weakness in the car and PC sectors was notable.
China’s retail sales experienced the biggest miss, with growth slowing to 2.5% from 3.1% (lowest year-to-date) against expectations of a pickup to 4.5%.
China’s state council and Ministry of finance were considering a cut to stamp duty on stock trades, a move aimed at reviving the stock market.
Japan’s Q2 GDP surpassed expectations, expanding 6.0% QoQ annualized, double the consensus forecast of 2.9%, following 3.7% growth in the previous quarter.
The Reserve Bank of New Zealand (RBNZ) was expected to leave the Official Cash Rate (OCR) unchanged at 5.50% in its upcoming policy meeting on August 16.
Europe, Middle East, Africa:
European equity markets were under pressure.
UK jobless claims increased, but wage growth accelerated to a new high. This situation doesn’t bode well for inflation, as sticky wage inflation has been a concern for core inflation and may exert pressure on the Bank of England (BoE) to continue hiking rates.
On the other hand, UK food price inflation dropped sharply by 2.2%, indicating a potential moderation in headline inflation.
German ZEW sentiment showed a slight improvement in August at -12.3, surpassing the consensus of -14.7 and the previous -14.75.
The Central Bank of Russia hiked its key rate by 3.5% to 12% at an emergency meeting, aiming to address recent rouble weakness and maintain stability.
European governments were increasingly imposing windfall taxes on profit-making businesses.
Saudi Arabia and UAE increased purchases of Nvidia chips crucial for developing AI software.
The Americas:
Tesla introduced two lower-spec versions of its less popular Model S and X electric vehicles in North America.
Bank of America (BofA) predicted that US consumers would be more resilient than investors think, with spending expected to rise in 2023 and 2024.
Argentina’s central bank devalued the peso and raised rates following a surprise election win by a far-right candidate.
US hedge funds reduced exposure to Chinese stocks in Q2, resulting in exposure well below five-year averages by the end of July.
Hollywood studios offered writers a new deal to end a strike, including pay increases, data sharing, and assurances related to artificial intelligence (AI).
The Week Ahead:
Monday:
Tuesday:
Industrial Production (China)
Retail Sales (US)
Wednesday:
Consumer Price Index (UK)
Gross Domestic Product (EA)
Building Permits (US)
Industrial Production (US)
FOMC Minutes (US)
Thursday:
Initial Jobless Claims (US)
Friday:
Retail Sales (UK)
Harmonized Index of Consumer Prices (EA)
Investment Tip of The Day
Regularly assess the diversification of your investment portfolio to ensure it includes a mix of assets, sectors, and geographic regions for risk management.
Meme of the Day
