US stocks mixed following president Bidens remarks on China tariffs
US Equities finished mixed on Friday in the wake of President Joe Biden’s statement that tariffs imposed by the Trump Government were under review. Consequently, the S & P 500 was up 0.01% to close at 3,901.36, DOW closed 31,261.90, up 0.03% while NASDAQ 100 declined by 0.30% to close at 11,354.62. The yield on 10-year USTs rose 3pbs to 2.81% as traders gauged the Fed’s tightening direction amid growing concerns about an economic slowdown. Brent crude rose 1% to $113.68 per barrel at a time the war in Ukraine continues to put pressure on commodity prices and supply chains remain disrupted by covid lockdowns in China. Meanwhile, Gold rose 0.5% to $1,854.99 per ounce. Later this week, US new home sales, S&P Global PMIs, FOMC minutes and US GDP, initial jobless claims are expected on Tuesday, Wednesday, and Thursday respectively. Also, US core PCE price index; personal income and spending; wholesale inventories; University of Michigan consumer sentiment reports are due Friday.
US Equities finished mixed on Friday in the wake of President Joe Biden’s statement that tariffs imposed by the Trump Government were under review. Consequently, the S & P 500 was up 0.01% to close at 3,901.36, DOW closed 31,261.90, up 0.03% while NASDAQ 100 declined by 0.30% to close at 11,354.62. The yield on 10-year USTs rose 3pbs to 2.81% as traders gauged the Fed’s tightening direction amid growing concerns about an economic slowdown. Brent crude rose 1% to $113.68 per barrel at a time the war in Ukraine continues to put pressure on commodity prices and supply chains remain disrupted by covid lockdowns in China. Meanwhile, Gold rose 0.5% to $1,854.99 per ounce. Later this week, US new home sales, S&P Global PMIs, FOMC minutes and US GDP, initial jobless claims are expected on Tuesday, Wednesday, and Thursday respectively. Also, US core PCE price index; personal income and spending; wholesale inventories; University of Michigan consumer sentiment reports are due Friday.
Bunds open stronger retracing trend from Friday. The 10Y touched a high of 0.976% before dropping to 0.935%, 4bps down day-on-day. Peripherals mirrored the move on bunds with a relatively strong open; 10Y BTPs yields went as high as 2.914% before retreating to 2.880%, 3 basis points firmer intraday. Stocks opened higher as dip buyers continued to jostle for bargains amid worries over tight monetary policy and decelerating growth. Consequently, the Stoxx 600, opened higher at 434.85 compared to previous session’s closing of 431.10. On the data front, Eurozone S&P Global PMIs is expected Tuesday while ECB publishes its Financial Stability Review on Wednesday.
A solid start to the space to kick off the week following a similar showing on Friday. Oilers had largely traded firmer up at least 0.50pts save GABON which shed 0.50pts; the trend continues at the open with GABON down 0.125pts. South Africa also trading firmer after S&P revised outlook on debt to positive from stable.
Activity in the Nigerian local Secondary Market for Bonds was mixed. We saw demand trickle across the short to mid end of the curve while the long end had bearish sentiments. Intraday, average yields were up by 3bps across the curve. Consequently, FGN 29s closed at an offer rate of 11.10%, down 7pbs from previous session’s level of 11.17% while 50s closed at an offer rate of 12.90% up 3bps from previous sessions level of 12.87%. Meanwhile, MPC is expected to meet on 23rd and 24th of May 2022.Secondary Market for Treasury bills had mixed sentiments ahead of next week’s NTB auction. We saw pockets of demand sip in with across the curve. Day-on-day, average discount rates were mostly unchanged across the curve. Consequently, discount rates on 11th July 2022 SPEB closed at 3.20% compared to last session’s closing of 3.30% while 7TH Feb 2023 OMO closed at 4.52% compared to last session’s closing of 4.60%. The exchange rate between the naira and the US dollar closed at N417.46/$1 at NAFEX compared to previous session’s level of N417.50/$1, an appreciation of circa 0.01%.