Financial market update

03 November 2012, Sweetcrude, Lagos – Local and international financial market update.
Nigeria – The National Bureau of Statists has confirmed the position of the Federal Ministry of Agriculture and Rural Development that the recent flooding of some farmlands across 12 states in the country notwithstanding the country would not face any food crisis. The report however has revealed that in terms of output the real agricultural GDP growth in the third quarter stood at 3.89% against 5.76% in the corresponding quarter of 2011.

USA – Hedge funds raised bullish bents on oil for a second week as US stockpiles fell to the lowest level in a month and the country’s economy showed signs of strengthening. US employment claims declined, consumer confidence increases and a measure of business growth showed the first expansion in three months. During the month of November.

CHINA – China may maintain its annual economic growth target at 7.5% next year in a sing the new leadership headed by Xi Jinping won’t tolerate a bigger slowdown from the lowest goal since 2004. It is expected that the new premier is prepared to expand fiscal and monetary easing should China’s nascent economic recovery falter.

INDIA – India’s manufacturing growth accelerated to a five month high in November with the PMI Index rising to 53.7 from 52.9 in October. Prime Minster Manmohan Singh overhauled policies in September seeking to lure more foreign investment, contact a budget deficit and avert a credit rating down grade.

Bonds – The markets rallied on Friday with yields dipping across the curve as demand seems to have returned to the bond markets. Interest from Offshore players was also revived this week with flows coming into the markets after last week which saw very little act