Global Markets:

United States

In the United States (US), labour market conditions remain broadly stable, with jobless claims rising slightly to around 200,000, indicating limited layoffs, meanwhile Q3 2025 Gross Domestic Product (GDP) growth rate was revised up to 4.4% annualised, driven by strong consumer spending and business investment.

Euro Area

In the Euro Area, growth continued moderately, with the Composite Purchasing Managers’ Index (PMI) settling at 51.5 in January (previously 51.9 points). Services eased to a multi-month low while manufacturing expanded, and consumer confidence improved slightly to -12.4 (previously -13.2), signalling a gradual recovery.Asia

Across Asia, conditions were mixed but generally positive. Japan’s Manufacturing PMI rose to 51.5 points in January, aided by exports and domestic activity, while equities gained after the Bank of Japan (BoJ) held rates and a weaker yen supported markets. In China, authorities are expected to set a cautious 2026 GDP target of 4.5 – 5% to balance growth and resilience.

Oil Markets

Global crude oil rose modestly this week as Brent and WTI gained on supply risks and Middle East tensions, despite lingering oversupply. The upward revision of the global economic outlook released by the Internation Monetary Fund (IMF) also support the crude oil price gain.

Outlook:

This week, Global markets are set for a cautious start as investors weigh mixed signals. US jobs and strong Q3 2025 GDP support confidence, while eurozone growth is slow but steady. In Asia, Japan’s factories expanded and China set a cautious 2026 GDP target. Oil and commodities remain sensitive to supply risks, and positive global economic growth keeping investors selective amid uncertainty. 

Domestic Economy:

The International Monetary Fund (IMF) has revised upward graded Nigeria’s 2026 GDP growth projection to 4.4%. This revision reflects improving macroeconomic conditions, easing inflationary pressures, and ongoing reforms aimed at strengthening fiscal management and economic stability.

Equity Market:

The Nigerian Exchange All Share Index (NGX-ASI) fell by 0.37% week on week (W/W), closing at 165,512.18 points. Market capitalisation stood at ₦105.96tn and year to date return stood at 6.36%.

Fixed Income and Money Market:

The fixed-income market traded mixed last week as investors balanced shifted attention to the equities market. Yields across the Short- to long-tenor Nigerian Treasury Bills yields’ rose on weak investor demand. The bond market was largely bullish, with yields on the 3-year, 5-year and 7-year falling while the 10-year curve yield had marginal gains. Open Repo Rate (OPR) and Overnight Rate (OVR) settled at 22.50% and 22.79% respectively. Open Market Operations (OMO) yield closed at 21.74% for the 208-day paper.

Outlook:

Equity Market

Nigerian equity market may see moderate activity this week as investors balance economic fundamentals with earnings prospects. Capital could rotate into high-performing sectors, though cautious sentiment suggests selective stock picking will be key.

Fixed Income Market

The fixed-income market is likely to remain active but range-bound. Short to medium-term Nigerian Treasury Bills (NTB) yields may face upward pressure, while longer-dated bonds could attract investors seeking stability amid supportive liquidity conditions.