Are equity bulls
running out of ammunition?
Away from
Nigeria, it is shaping up to be a dull day for financial markets with equities
across the world struggling for direction due to a lack of fresh catalysts.
Stocks in Asia
witnessed another muted session today as many markets in the region remain
closed for the Lunar New Year holiday. In Europe, shares got out of the wrong
side of the bed thanks to weak earnings from French banking group BNP Paribas
and disappointing data from Germany. While Wall Street has the potential to
extend gains this afternoon on strong corporate earnings and cautious optimism
over US-China trade talks, the medium- to longer-term outlook for equity
markets tilts to the downside. Concerns over slowing global growth remains a
dominant theme while the unpredictable nature of trade negotiations has
certainly left investors on edge. With other geopolitical risks such as Brexit,
China’s slowdown, Eurozone growth concerns and political turbulence in
Washington seen stimulating risk aversion, the ingredients are in place for a
stock market sell-off.
Investors who
were expecting fireworks and action from US President Donald Trump’s State of
the Union address were left empty handed after nothing new was brought to the
table. While Trump discussed trade relations with China, border security and
the budget, this was of no real interest to markets and such was reflected in
the muted reaction. With Trump failing to provide fresh insight into the
progress over US-China trade talks and the March deadline looming, sensitivity
to trade developments is poised to heighten moving forward.
Brexit
uncertainty and growing pessimism over Theresa May’s ability to secure further
concessions from the EU continues to weigh on the Pound. With the European
Union already stating that the Withdrawal Agreement is “not open for
re-negotiations” it will be interesting to see what the prime minister achieves
from her trip to Brussels. While negativity over Brexit is likely to continue
punishing the Pound in the short term, the currency could receive a boost if
expectations mount over the government delaying Brexit by extending Article 50.
Although the Bank of England policy meeting is on Thursday, we expect the Pound
to offer a muted reaction to this risk event as Brexit continues to overshadow
economic fundamentals.
In the commodity
markets, Gold is trading lower today thanks to an appreciating Dollar. While
the precious metal is seen extending losses in the near term, bulls still
remain in control in the medium to longer term. For as long as global growth
fears weigh on market sentiment and expectations mount over the Fed taking a
break on rate hikes this year, Gold will continue shining. Focusing on the
technical picture, the precious metal has the potential to rebound towards
$1,320 if $1,308 proves to be reliable support. A breakdown below $1,308 is
likely to invite a decline back towards the psychological $1,300 level.
Have you heard this? Many Nigerian exporters have been defrauded of huge amount of money in the process of exporting commodities to foreign countries. Do you know why? They were not trained on export operations, management, documentations and the best methods of payment in export trade. This is terrible!!! Nigerians cannot continue to lose money to foreigners in the course of export business. Exporters, why don’t you get a practical manual that teaches the stages of export trade from processing and packaging of commodities to receipt of payment by the foreign buyers. It teaches export operations, export management, export documentations and methods of payment in export trade? It is a contemporary step-by-step guide to export trade. It tells all the contemporary dynamics in export trade. To get it, click on the link below:
http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
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