Trading Tuesday
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Market Data
Local
Global
*Data as of 6pm WAT
Market News
Local
Money Supply Up 31.62% YoY to N64.36tn on Increased FG Spending - This Day
Money supply (M2) in Nigeria rose to an all-time high of N64.36 trillion, with a 31.62% YoY increase from the previous year, driven by growth in proceeds from the Federation Account Allocation Committee. The increase is 21.81% YtD from January 2023.
FBN Holdings to raise fresh capital - Punch
FBN Holdings Plc will raise fresh capital through a rights issue, creating 8.974 billion Ordinary shares at 50 kobo each, pending shareholder approval at the annual general meeting next month.
At the end of the bimonthly MPC meeting, the committee voted to:
Raise the MPR by 25 bps to 18.75%
Retain the asymmetric corridor at +100/-300 around the MPR
Keep the CRR at 32.50%
Hold the liquidity ratio constant at 30.00%
Global
US business activity slowed to a five-month low in July - Reuters
The pace of US business activity growth slowed in July as services softened, but overall activity remained strong. The ISM's non-manufacturing index fell to 55.3 in July from 56.1 in June, but remained above the 50 mark that separates expansion from contraction. The services index was dragged down by a decline in new orders, but the employment index rose.
FDIC accused banks of misreporting deposit data - Financial Times
Credit Suisse is facing billions of dollars in losses after it was caught up in the collapse of Archegos Capital Management, a family office run by Bill Hwang. Archegos was a major client of Credit Suisse, and the bank had lent billions of dollars to the firm. When Archegos collapsed in March, Credit Suisse was forced to sell billions of dollars of assets at a loss.
South Korea's GDP grew 0.6% in Q2 - Reuters
South Korea's economy grew by 0.7% in the second quarter of 2023, up from 0.6% in the first quarter. The growth was driven by strong exports, which rose by 15.7% in the second quarter. Domestic demand also grew, but at a slower pace than exports. The Bank of Korea expects South Korea's economy to grow by 2.7% in 2023.Microsoft and Meta own IP rights to letter ‘X’ in new complication for Elon Musk - Reuters
Twitter's plan to rebrand as "X" has run into a problem: dozens of companies already own trademarks for the name. Meta, Microsoft, and hundreds of other companies have trademarks for "X" in various industries, including technology, finance, and entertainment. Twitter has not yet said how it plans to address the trademark issue.
Weekly Investment Watchlist
Market Commentary
Asia and Australia
Greater China equity markets rebounded significantly Tuesday, recovering from multi-month lows reached on Monday. The Hang Seng gained 4.1% and the Shenzen Index up 2.5%. Traders focused on politburo officials’ pledge to ramp up policy support by boosting consumer demand, giving greater help for property sector.
South Korea GDP slightly ahead of expectations, but details soft. GDP expanded 0.6% QoQ in Q2, compared to consensus 0.5% and follows 0.3% in the previous quarter. However, private consumption and gross fixed capital formation were both negative.
Sri Lanka rupee sinks as interest rate cuts, loosening of import controls weigh
Cereal shortages may fuel inflation in India as rice, corn and wheat prices rise substantially
Europe, Middle East, Africa
The German Ifo business climate survey for July sees further deterioration to 87.3 versus consensus 88.0 and prior 88.5.
Most recent ECB bank lending survey showed record drop in company loan demand to all-time low since start of survey in 2003. Credit conditions tightened more than expected in Q2.
The BoE quarterly update on its Asset Purchase Facility (APF) projected a net loss of ~£100B by 2033 based on prevailing market rate path.
UK pledges crackdown on harmful ads on Google and other web platforms
The Americas
Growing US labor supply helping to limit wage growth, making it easier for Fed to achieve soft landing
JPMorgan’s Kolanovic sticks with bearish call on US stocks, citing weak breadth and lagged effect of policy tightening
General Motors reports Q2 EPS beat $1.91 ex-items vs FactSet $1.86; Revenue beat $44.75B vs FactSet $42.13B; Raises Net Income forecast by close to $1B.
Verizon Communications reports Q2 EPS beat $1.21 ex-items vs FactSet $1.17; Revenue miss $32.6B vs FactSet $33.30B
The Week Ahead:
Monday:
Tuesday:
CB Consumer Confidence
House Price Index
Wednesday:
MBA Purchase Index
New Home Sales
Building Permits Final
Thursday:
Initial Jobless Claims
Friday:
Core PCE Price Index YoY
Investment Tip of The Day
Regularly monitoring your investment performance relative to relevant benchmarks is essential for assessing the effectiveness of your investment strategy. By doing so, you can identify areas of improvement, make data-driven decisions, and optimize your portfolio for better long-term results.
Meme of the Day
