September 4, 2025/United Capital Report

• Global Markets:United States
• US job openings hit a 10-month low as Beige Book showed weak hiring, steady inflation, and soft spending, boosting rate-cut bets. 
• S&P 500, DIJ, and NASDAQ all depreciated closing in the red.Europe
• European stocks opened the week on a steady note but mid-week sell pressure dragged the markets to the red region.
• Markets declined was led by rate-sensitive sectors such as real estate and utilities, as investors scaled back expectations for imminent rate cuts.
• CAC 40, STOXX600 and FTSE 100 closed in the red territory.Asia
• Asian equities showed mixed performance. India advanced on optimism over expansionary global monetary policy and domestic support. Conversely, China retreated amid regulatory and policy concerns.
• Hong Kong (Hang Seng) also ended weaker, dragged down by Chinese market concerns despite early gains from tech stocks.
• Shanghai Composite slid sharply as regulators signaled tighter measures to cool speculative trading.Oil Markets
• Brent crude oil fell by 0.10% week-on-week to settle at $67.67per barrel. 
• Oil prices extended losses from the prior session after reports suggested that Organization of the Petroleum Exporting Countries plus other major oil-producing nations (OPEC+) was considering another output hike at an upcoming meeting.

         Outlook

• Global markets could be characterised by a mix of key economic data releases and ongoing geopolitical concerns. The primary drivers will be labour market reports, particularly in the United States, which could influence expectations for future interest rate policy.Investors may closely watch for any signs of economic slowdown that could prompt a more dovish stance from central banks. Meanwhile, geopolitical tensions and trade disputes, such as the U.S. tariffs on Indian goods, will continue to add a layer of uncertainty and volatility. The week’s key events will provide fresh clues on the direction of the global economy.African Markets:Ghana
• Ghana’s annual inflation rate slowed for the eighth month in a row in August, reaching its lowest level since October 2021.
• Inflation fell to 11.5% year-on-year in August relative to 12.1% in July.Kenya
• Kenya Purchasing Managers’ Index rose to 49.4 in August 2025  compared to 46.8 in July.
• Readings above 50.0 indicate growth in business activity, while those below 50.0 signal contraction.South Africa
• South African business confidence declined by another point in the third quarter of 2025.
• Business confidence fell to 39 points, three points below the long-term average level of 42 points.
• The decline was due to U.S. tariffs on South Africa’s exports.Outlook:African markets might be relatively steady. South African equity could be supported by dividend payouts from major firms.  East African economies such as Kenya and Ethiopia could continue to attract investor interest on the back of tourism, agriculture, and infrastructure growth.Ultimately, investors might be watching out for signs of stability and policy direction to combat high inflation and currency volatility in various African countries.

   

  Domestic Economy:

   Nigeria’s Purchasing Managers’ Index (PMI) Hits 7-Month High

• Composite PMI rose to 52.7 points in July. This is the highest PMI since January 2025.
• Higher PMI signals rising investment and capital inflows into the economy.Federal Government of Nigeria (FGN) Achieved Revenue Target
• FGN said it has achieved its 2025 revenue target earlier than expected.
• This is supported by strong non-oil sector inflows.Equity Market
• NGX-ASI fell by 1.52% week on week (w/w), closing at 138,157.14 points as of Wednesday, September 03 2025.
• WAPCO (-13.08%), UBA (-5.96%) and ZENITHBA (-2.65%) led large cap losses.
• Market capitalisation dropped to ₦87.42tn, due to profit taking.
• The Nigerian equity year-to-date returns stood at 34.23% as of Wednesday, September 03 2025Money Market
• System liquidity decreased from a surplus balance of ₦1.43tn to a surplus balance of ₦1.37tn as of September 03 2025.
• Short-term rates remained stable.
• Open Repo Rate (OPR) and Overnight Rate (OVR) settled at 26.50% and 26.96%.

• Open Market Operations (OMO) yields fell by 2.47% week-on-week to close at 25.55% for the 307-day paper.

  Outlook:

  Equity Market

  The market may likely turn around as it is already in the oversold position. Investors await the release of H1 2025 results from first-tier banks. This may serve as an additional catalyst for the market.

   Fixed Income Market

  Fixed income market could remain stable amid high system liquidity and relatively attractive yields.