Friday, 9 October 2020

PENDULUM SWINGS IN FAVOUR OF RISK AS TRUMP LEAVES HOSPITAL

President Donald Trump
Lukman Otunuga,

Senior Research Analyst at FXTM

 

The sentiment pendulum swung deeper into “risk-on” territory on Tuesday morning after President Donald Trump’s departure from hospital soothed concerns about his health.

 

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Equity bulls in Asia were instilled with a renewed sense of confidence on this news, elevating shares to levels not seen in more than two weeks. European stocks opened slightly higher with the positive mood potentially finding its way back into Wall Street this afternoon. In Nigeria, the All Share Index (ASI) gained 2.11% on Monday and could extend gains today amid the risk-on sentiment.

 

There seems to be a growing sense of optimism for more U.S fiscal stimulus after House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour on Monday. Market sentiment could brighten if both sides reach a breakthrough on new government spending before the Presidential elections less than a month away. Such an outcome may inject equity bulls with enough inspiration to retest 2020 highs. However, the road north remains filled with many obstacles in the form of rising coronavirus cases in the United States and across the globe and lingering fears around economic growth.

 

Do you know that the kind of #vehicle you drive goes a very long way in affecting your #image? Yes, your vehicle tells people, including your #prospective #clients, how #comfortable you are. #Comfort is directly proportional to #competence. Of course, if you are competent in what you do, you will be comfortable enough to afford at least a #brand #new vehicle. Have you ever wondered why #banks and other #financial #institutions give their #marketers brand new cars? Your level of comfort goes a long way in determining if your prospective clients will trust you. The reason why you have not won those contracts or deals could be because your prospective customers think that you are incompetent owing to how worn-out your car is. Yes, the onus is on you to acquire brand new cars. Top sales people buy new cars every year. Do you know what? That worn-out vehicle that you currently drive can look like a brand new one. We, at GOF AUTOS LIMITED can make it possible via total #body #work, #refurbishing, #priming, #painting with the best #paint in the #world called #SIKKENS #PAINT, #OVEN #BAKING with a world-class oven and #BUFFERING. #Blue-chip #companies, #CEOs and top #managers give us all their worn-out vehicles for body work. You, too, can enjoy our world-class services. For details about GOF Autos Limited, click: http://www.tectono-business.com/2017/06/gof-autos-limited-best-automobile.html

 

Dollar waits for Jerome Powell

After depreciating against most G10 currencies yesterday, the Dollar has entered Tuesday’s session struggling to shake away the Monday blues. In our technical outlook, we discussed the possibility of the Dollar Index trending lower if 94.00 proves to be reliable resistance. The Dollar Index is trading around 93.48 as of writing and could slip towards 92.70 if bears can conquer the 93.30 intraday support.

 

Fed Chair Jerome Powell will be under the spotlight today as he delivers a keynote speech at the National Association of Business Economics (NABE) conference. Any fresh clues on monetary policy could influenced where the Dollar Index (DXY) performance this week.

 

Extra-smart #people deserve extra-smart #investment in #landed #properties at the new #Lagos, otherwise known as #Ibeju #Lekki. This is where great #developmental #projects are currently going on and in the next two years, it will surpass #Lekki Phase 1 Estate. Are you aware that #Lekki #Port will commence full operations in 2022? This implies #port #operations and #development are shifting from #Apapa to Ibeju-Lekki. Any plot of land you buy in Ibeju-Lekki now will appreciate by excess of 200% in 2022. Other notable attraction here include: Lekki #Free #Trade #Zone, #Dangote #Refineries, Eleko #Beach, Lekki, New #Epe #International #Airport, #Eleganza #Industrial #Estate, Pan #Atlantic #University etc. If you have not invested heavily in landed properties, you have not landed. Acquire genuine plots and hectares of land free from government encumbrance in our estates at Ibeju-Lekki. For details, click: http://www.tectono-business.com/2019/07/have-share-of-new-lagos-by-investing-in.html

 

Currency spotlight – Naira

The Nigerian Naira recovered from a low of 385.50 per USD on the official market seen last Friday after the Central Bank of Nigeria offloaded Dollars to stabilize the local currency.

 

On the black-market exchange, the Naira has slightly recovered trading around 458 per USD today. The positive sentiment and recent jump in Oil prices could support the Naira in the near term. However, the recent decline in foreign exchange reserves and rising inflationary pressures amid the coronavirus crisis may limit the Naira’s upside gains.

 

Have you heard that #Landwey is giving out plots of land at #URBAN #PRIME TWO #ESTATE at #Abraham #Adesanya #Roundabout, #Ajah, #Lagos? You can get yours by clicking: http://www.tectono-business.com/2020/02/urban-prime-two-estate.html

 

Commodity spotlight – Gold

Gold prices slightly dipped on Tuesday morning as equities roared to life following Trump’s discharge from hospital, though a softer Dollar limited the precious metal’s downside losses.

 

Overall, the outlook for Gold remains bright despite the risk-on mood sweeping across financial markets. Rising coronavirus cases across the world, political risk ahead of November’s US election, Brexit related uncertainty and low-to-negative US government bond yields are likely to stimulate appetite for the Gold in Q4. If the Dollar ends up weakening on rising inflationary pressure in the United States, this could prove a tailwind for Gold which is also considered an inflationary hedge. Looking at the technical picture, the daily close above $1900 could open a path towards $1935. Should prices break back below $1900, Gold may sink towards $1865.

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