June 7, 2019/InvestmentOne Report
Please click to download the Weekly Report for the week ending Friday 7th June 2019
Global Economy
· Trade war continues, U.S. Fed hints a rate cut, World Bank cuts its growth forecasts and oil rebounds. These are some of the top headlines that dominated the global scene in the outgone week.
Nigerian Economy
· In the outgone week, the World Bank Group released a report, which showed that Nigeria’s real Gross Domestic Product (GDP) is expected to grow at 2.1% in 2019. This is slightly lower than the 2.2% it had predicted for the country earlier this year. However, the bank projected a 2.2% growth for the country for 2020 and 2.4% for 2021.
Equities Market
· Due to the Eid al-Fitr holiday declared during the week, there were only three trading sessions in the outgone week. The market lost in all three trading sessions and consequently closed negative 2.05%, week-on-week to close at 30,432.13pts. Similarly, market capitalization decreased to N13.40 trillion from N13.68trillion in the previous week.
Money Market
· Money market rates increased in the outgone week as Overnight rate and Open-Buy Back jumped to 11.43% and 10.86% from 4.93% and 4.14% respectively. The rise in rates may not be unconnected to the CBN’s OMO sales during the week as well as its FX auction which led to a squeeze in system liquidity.
Bond Market
· The bond market was negative in the outgone week as yields increased across most maturities
Foreign Exchange Market
· At the interbank market, the Naira closed flat at N306.95 against the USD as it continues to see support from CBN’s intervention sales.
The Week Ahead
Eurozone
· The Balance of Trade report for April 2019 will be released on 14th June 2019
Russia
· The Balance of Trade report for April 2019 will be released on 11th June 2019
· The Interest Rate Decision and Monetary Policy Report will be available on the 14th of June 2019
China
· The Balance of Trade report for May 2019 will be released on 10th June 2019
· The Inflation report for May 2019 will be released on the 12th of June 2019
United Kingdom
· The Balance of Trade report for April 2019 will be released on 10th June 2019
· GDP report for April 2019 will be released on the 10th of June 2019
United States
· The Inflation report for May 2019 will be released on the 12th of June 2019
Germany
· The Inflation report for May 2019 will be released on the 13th of June 2019
France
· The Inflation report for May 2019 will be released on the 14th of June 2019
