Global shares edge up in US holiday slow trading ahead of Fed minutes later this week
US equities finished mixed last week ahead of Monday’s President’s Day holiday. The Dow Jones gained 0.4% to 33,827, the S&P lost 0.3% to 4,079 and the Nasdaq fell 0.6% to 11,787. US treasury rates were slightly lower with the yield on the 2-year and 10-year notes declining 2 bps to 4.61% and 3.82% respectively, while the yield on 30-year bond lost 3 bps to 3.87%. The US Dollar remained strong after a strong run of US economic data and ahead of the release of the minutes from the Federal Reserve’s latest meeting. DXY was up 0.08% at 103.865 this morning. Earning results were positive on Friday as Deere & Company topped estimates and Applied Materials also exceeded the expectations. The economic calendar showed import price inflation declined more than expected in January by 0.2% m/m versus 0.1% decrease expected. The Leading Economic Index declined for the 10th straight month losing 0.3% and confirming an uncertain outlook over recession. US markets are closed today for a holiday. The focus later this week will be on Manufacturing and Services PMI, home sales, personal spending, as well as the first revision of Q4 GDP and a host of Fed speakers, while we will get a release of the minutes for the Fed’s February meeting.
US equities finished mixed last week ahead of Monday’s President’s Day holiday. The Dow Jones gained 0.4% to 33,827, the S&P lost 0.3% to 4,079 and the Nasdaq fell 0.6% to 11,787. US treasury rates were slightly lower with the yield on the 2-year and 10-year notes declining 2 bps to 4.61% and 3.82% respectively, while the yield on 30-year bond lost 3 bps to 3.87%. The US Dollar remained strong after a strong run of US economic data and ahead of the release of the minutes from the Federal Reserve’s latest meeting. DXY was up 0.08% at 103.865 this morning. Earning results were positive on Friday as Deere & Company topped estimates and Applied Materials also exceeded the expectations. The economic calendar showed import price inflation declined more than expected in January by 0.2% m/m versus 0.1% decrease expected. The Leading Economic Index declined for the 10th straight month losing 0.3% and confirming an uncertain outlook over recession. US markets are closed today for a holiday. The focus later this week will be on Manufacturing and Services PMI, home sales, personal spending, as well as the first revision of Q4 GDP and a host of Fed speakers, while we will get a release of the minutes for the Fed’s February meeting.
US equities finished mixed last week ahead of Monday’s President’s Day holiday. The Dow Jones gained 0.4% to 33,827, the S&P lost 0.3% to 4,079 and the Nasdaq fell 0.6% to 11,787. US treasury rates were slightly lower with the yield on the 2-year and 10-year notes declining 2 bps to 4.61% and 3.82% respectively, while the yield on 30-year bond lost 3 bps to 3.87%. The US Dollar remained strong after a strong run of US economic data and ahead of the release of the minutes from the Federal Reserve’s latest meeting. DXY was up 0.08% at 103.865 this morning. Earning results were positive on Friday as Deere & Company topped estimates and Applied Materials also exceeded the expectations. The economic calendar showed import price inflation declined more than expected in January by 0.2% m/m versus 0.1% decrease expected. The Leading Economic Index declined for the 10th straight month losing 0.3% and confirming an uncertain outlook over recession. US markets are closed today for a holiday. The focus later this week will be on Manufacturing and Services PMI, home sales, personal spending, as well as the first revision of Q4 GDP and a host of Fed speakers, while we will get a release of the minutes for the Fed’s February meeting.
SSA opens firm, albeit on a relatively muted note. Last week was negative for risk as investors focused on the shifting outlook for interest rates, with traders pricing in quarter-point interest rate increases at the Fed’s next two meeting after policy makers said that bigger hikes were not out of the question. NIGERIA (+0.05) opens a little changed while Angola and Ghana open relatively muted. Ghana minority MPs demand parliamentary resolution on domestic debt swap ahead of IMF bailout, a new hurdle that could delay the stated goal of obtaining a $3bn bailout before the end of March.
The NTB secondary market closed on a flat note with average yields across the curve, closing flat. Average yields across the short, medium and long ends of the curve remained unchanged. Mar 9, 2023 bill witnessed some selling interest while Jun 8, 2023 bill saw some buying interest.
In the OMO secondary market, average yields also closed flat. Average yields at the short and medium ends remained unchanged.
The FGN bonds secondary market closed on a slightly negative note with average yields across the curve closing higher by 2bps. Average yields on the medium & long ends rose by 1bps & 3bps respectively. The short end however dropped by 1bps on the average. The Mar 2024 bond was the best performer while the Jul 2034 bond was the worst performer.