It may
be a relatively quiet week for the Nigerian economy as the economic calendar is
void of any Tier 1 releases. With the next major report scheduled for release
on April 15, the Naira and Nigerian stock markets are likely to remain
influenced by external forces. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Sentiment
towards the largest economy in Africa is positioned to become even brighter
after the Central Bank of Nigeria surprised markets by cutting interest rates
in March. With lower rates reducing the cost of borrowing and encouraging
businesses to increase investment spending, this will be positive for growth
potential.
Outside
of Nigeria, US-China trade developments, Brexit and economic reports from major
economies will ensure this will be another busy week for global markets. The
mood across stock markets was mixed today, amid cautious optimism over trade
talks and growing anticipation ahead of US earnings.
In the
currency space, the Dollar entered the week on shaky footing despite last
Friday’s US jobs report soothing concerns over the health of the largest
economy in the world. The Dollar is likely to remain pressured by speculation
around the Fed cutting interest rates by year-end. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
Markets are now expecting a 60% chance of this becoming reality. A vulnerable
Dollar is good news for the Naira and many other emerging market currencies.
Much attention will be directed towards the FOMC Minutes which will be closely
scrutinized for more clues on the Fed’s policy path. Should the minutes sound
dovish, this may end up weakening the Dollar further.
Brexit
drama is set to remain a major theme in the United Kingdom as the April 12
deadline looms. With Theresa May flying to Berlin and Paris in a bid to
persuade the EU to agree to extend Article 50, this is already shaping up to be
a wild week for the Pound. Whatever the outcome of Theresa May’s trip, it will
certainly have a lasting impact on the Pound.
Taking
a look in the commodity markets, Brent and WTI posted new highs for 2019 thanks
to geopolitical tensions and Dollar weakness. OPEC’s ongoing supply cuts and US
sanctions on Iran and Venezuela have been the major driver of prices throughout
this year. However, the latest boost was received from an escalation of
fighting in Libya which is threatening further supply disruption. If output
from Libya is reduced significantly in the upcoming days and OPEC does not act,
we may see a further 5-10% surge in prices over the next two weeks. http://www.tectono-business.com/2016/02/contemporary-step-by-step-guide-to.html
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