03 May 2016, Sweetcrude, Houston — Local and international financial market products and services update.
NIGERIA: The federal government is now paying between N12.62 and N12.88 as a subsidy for every litre of petrol consumed by Nigerians, the updated pricing template of the Petroleum Products Pricing Regulatory Agency (PPPRA) has shown.
The template, which was released Monday by the PPPRA in Abuja, indicates that the gradual rise in subsidy paid to oil marketers for bringing products into Nigeria was necessitated by the recent increase in crude oil price to about $47 a barrel.
This means that for every litre of petrol consumed by Nigerians, the federal government would pay a subsidy of N12.88 to the independent markets while the Nigerian National Petroleum Corporation (NNPC) gets N12.62 for selling below the expected open market price.
FIXED INCOME: In reaction to the last OMO auction, bears dominated bonds. In general, activity in bonds was light on Friday and it seems like the market is short bonds. We saw demand in T-bills led by the short-dated bills as money market liquidity is north of N400bn. T-Bill auction this week Wednesday. On offer is N45.17bn 91day, N23.42bn 182day and N82.00bn 364day.
FX: The results of the CBN weekly intervention that held last week Thursday is expected to be released today. The rate was maintained at $/NGN 197.00.
U.K: U.K. manufacturing unexpectedly shrank for the first time in three years in April, dealing a shocking blow to the economy after growth slowed in the first quarter.
Markit Economics said its factory Purchasing Managers Index dropped to 49.2 from 50.7 in March, below the key 50 level that divides expansion from contraction. Economists had forecast an increase to 51.2 from an initially reported 51, according to a Bloomberg survey.
Markit also said manufacturing output is falling at a quarterly pace of about 1 percent and it estimates that about 20,000 jobs were lost in the industry over the past three months.
AUSTRALIA: Australia’s dollar tumbled against all of its major peers while the nation’s shares and bonds rallied after an unexpected interest-rate cut. European equities declined after earnings from BMW AG and UBS Group AG missed estimates while the yen rose to an 18-month high.
The Aussie reversed an earlier gain versus the greenback after Reserve Bank of Australia reduced its benchmark rate by a quarter of a percentage point to a record low. The yen strengthened beyond 106 a dollar for the first time since October 2014, helping push the Bloomberg Dollar Spot Index to its lowest in almost a year.
COMMODITIES: Oil traded near $45 a barrel before weekly U.S. government data forecast to show rising stockpiles kept crude supplies at the highest level in more than eight decades.
Futures rose as much as 1.3% in New York as the dollar declined for the fourth day. Inventories increased by 500,000 barrels last week, according to the median estimate in a Bloomberg survey before an Energy Information Administration report Wednesday. Iran’s Dana Energy Co. is in talks with European and Asian companies to create partnerships to bid for oil and gas development rights in the country, Chairman Mohammad Iravani said.
Macro Economic Indicators
Inflation rate (Y-o-Y) for March 2016 12.80%
Monetary Policy Rate current 12.00%
FX Reserves (Bn $) as at April 28, 2016, 27.123
Money Market Highlights
30 Day 8.1546
90 Day 10.8609
180 Day 12.6548
USD 1 Month 0.4357
USD 2 Months 0.5230
USD 3 Months 0.6366
USD 6 Months 0.9041
USD 12 Months 1.06675
Tenor Maturity Yield (%)
91d 28-July-16 7.79
182d 27-Oct-16 9.42
364d 20-Apr-17 11.62
2y 31-Aug-17 11.48
3y 30-May-18 11.80
5y 13-Feb-20 12.73
Indicative Currency Exchange Rates
USDNGN 197.50 199.50
EURUSD 1.1495 1.1697
GBPUSD 1.4620 1.4823
USDJPY 105.66 105.69
USDCHF 0.94105 0.9513
GBPEUR 1.2584 1.2788
USDZAR 14.2431 14.4466
JPYNGN 188.3097 188.4303