04 November 2016, Sweetcrude, Lagos — Local and international financial market products and services update.
NIGERIA: The Minister of State for Budget and National Planning, Mrs. Zainab Ahmed, has said that the national economic recovery plan for the next three years will be ready next.
She explained at an economics communications workshop in Abuja on Thursday that the plan would serve as a guide for the preparation of annual budgets and would be a continuation of the initiatives contained in the Strategic Implementation Plan for the 2016 budget.
According to her, the plan will clearly state the economic policies of the government that will guide the investment decisions by domestic and foreign investors.
FX: Interbank market activities remains unchanged. NIFEX printed at $/NGN 318.00 and traded range for yesterday $/NGN 303.75- 374.90.
FIXED INCOME: There was some demand in the fixed income market at the start of trading yesterday – particularly in bills. However, sentiments changed after CBN announced the commencement of the debits for the FX auction. As this takes out liquidity from the system, sellers emerged but average bill yield still closed 22bps lower at 19.57%. In bonds, enquiries from real money accounts were seen both ways (buyers and sellers). Direction still remains unclear, but sentiments are tilted to a bearish bias in bonds.
U.S: U.S. employers likely stepped up hiring in October and boosted wages for workers, which could effectively seal the case for a December interest rate increase from the Federal Reserve.
Nonfarm payrolls likely increased by 175,000 jobs last month after rising 156,000 in September, according to a Reuters survey of economists. The unemployment rate is forecast falling one-tenth of a percentage point to 4.9%.
The Labor Department will release its closely watched employment report on Friday at 1:30 p.m., four days before the Nov. 8 presidential election.
The report will come on the heels of data last week showing an acceleration in economic growth in the third quarter. But economists see little impact from the report on an increasingly bitter and divisive campaign.
U.K: Mark Carney says he’s staying at the Bank of England. He’s just not saying what he’s going to do.
With his forecasting record proving patchy, the governor’s latest message is that the next move could be to tighten or loosen policy. A few months ago, policy makers foresaw a second interest-rate cut after the Brexit vote, while last year he was trying to indicate when rates would start to rise from a record low. The only thing Carney appears sure of now is his own tenure, which he extended this week to steward the economy through its divorce from the European Union.
COMMODITIES: Oil headed for its biggest weekly loss in nine months after giving up all its gains since OPEC agreed to trim output as skepticism grows over implementing the deal and as rising U.S. inventories worsen a glut.
Futures were little changed Friday in New York after falling 10% the previous five sessions. Prices closed Thursday at the lowest level since OPEC reached a preliminary agreement in Algiers to cut production. U.S. inventories increased by a record last week, government data showed Wednesday, while members from the Organization of Petroleum Exporting Countries claiming exemptions from the Sept.
Macro economic Indicators
Inflation rate (Y-o-Y) for September 2016, 17.90%
Monetary Policy Rate current 14.00%
FX Reserves (Bn $) as at Nov 02,2016, 23.957
Money Market Highlights
30 Day 18.1958
90 Day 19.0573
180 Day 20.1760
USD 1 Month 0.5320
USD 2 Months 0.6655
USD 3 Months 0.8756
USD 6 Months 1.2482
USD 12 Months 1.06675
Tenor Maturity Yield (%)
91d 02-Feb-17 15.51
182d 04-May-17 19.33
364d 21-Sep-17 22.12
2y 30-May-18 18.70
3y 29-Jun-19 14.72
5y 15-Jul-21 15.06
Indicative Currency Exchange Rates
USDNGN 314.00 315.00
EURUSD 1.1002 1.1204
GBPUSD 1.2369 1.2571
USDJPY 103.02 103.05
USDCHF 0.96895 0.9791
GBPEUR 1.1129 1.1333
USDZAR 13.4091 13.6128
JPYNGN 2.9397 3.0403
CHFNGN 323.22 324.91
EURNGN 345.57 346.94
GBPNGN 400.35 401.75