Asian markets saw gains today, echoing Friday’s rally in US stocks and bonds as investors increasingly believe that interest rates have reached their peak for the current economic cycle.
Equities in Australia, Japan, South Korea, and China all posted gains, pushing a regional stock gauge to its highest level in nearly a month. This marked the fourth consecutive advance of more than 1%.
South Korea’s benchmark index jumped by 4% following Sunday’s announcement that the country would ban short-selling.
This restriction took effect on Monday and is set to last until the end of June next year, as declared by South Korea’s Financial Services Commission.
Investors have adjusted their predictions for Federal Reserve rate cuts next year, with swaps pricing suggesting that a cut by June is fully priced in. This increased expectation for rate cuts stems, in part, from projections of a weaker jobs report and a slight uptick in US unemployment.
Vasu Menon, Managing Director of Investment Strategy for OCBC Bank Singapore, commented, “There’s a bit more reason for investors to be more optimistic that the Fed is probably done with rate hikes, but one should not let one’s guard down. If the economy proves to be more resilient, if inflation proves to be more stubborn, bond yields could go up once again.”
Most Asian currencies advanced against the dollar, with the South Korean won and Indonesian rupiah leading the way. Meanwhile, 10-year Treasury yields inched up in Asian trading after a nine-basis-point drop on Friday.
Forecasts for Federal Reserve cuts next year challenge the narrative of “higher for longer” that policymakers have outlined in recent months, potentially setting the market and Fed officials on a collision course.
Bank of Japan Governor Kazuo Ueda, addressing the central bank’s inflation target, mentioned that the bank cannot yet see its inflation target within sight with enough certainty, although the chances of achieving the goal are gradually rising.
Looking ahead, investors will closely watch the Reserve Bank of Australia’s potential interest rate increase after a four-meeting pause in rate hikes. China is set to release trade data following Chinese Premier Li Qiang’s pledge to expand imports in Sunday’s comments.
In the commodities market, oil prices rose slightly in Asia following Saudi Arabia and Russia’s reaffirmation of their commitment to supply curbs of over 1 million barrels a day through the year-end.
Nigerian Stock Exchange Bounces Back, Gains N132 Billion in Market Cap
The Nigerian Exchange Limited rebounded on Wednesday with the market capitalization surging by N132 billion.
This uptick was propelled by the positive performance of key stocks, including Seplat Energy (+10%), Meyer Plc (+9.79%), Sunu Assurance (+9.56%), Nestle (+9.52%), and Consolidated Hallmark Holdings Plc (+9.24%).
The All-Share Index closed rose by 0.34% to 71,283.34 points, reflecting investors’ optimistic sentiment, particularly in medium and large-cap stocks with solid fundamentals while the market capitalization increased to N39.007 trillion.
Despite a decline in total deals and volume by 19.14% and 32.55% to 6,579 deals and 360.60 million units respectively, the total value for the day increased by 17.64% to N6.61 billion.
Among the gainers, Seplat, Meyer, Sunu Assurance, Nestle Plc, and Consolidated Hallmark Holdings Plc stood out, closing at N2.310, N3.59, N1.49, N1.150, and N1.30 per unit, respectively, after gains ranging from 10% to 9.24%.
The losers’ chart was led by Guinea Insurance, down 10%, followed by Omatek (-9.88%), Abbey Mortgage Bank (-9.68%), Neimeth Pharma (-9.45%), and Tantalizer (-8.62%).
Performance across sectors was predominantly bullish, with the Insurance, Consumer Goods, Oil/Gas, and Industrial Goods indexes recording notable advancements of 1.17%, 0.89%, 6.06%, and 0.01%, respectively.
However, banking stocks emerged as the only laggard for the day, declining by 0.56%.
GT Bank (GTCO) dominated trading activities, emerging as the most traded security in terms of volume and value, with 56.91 million units worth N2.19 billion traded in 261 deals.
This positive momentum signals a renewed fervor in the Nigerian stock market.
Robinhood Expands to UK, Introducing Commission-Free Stock Trading
Robinhood Markets Inc., the pioneer of commission-free stock trading, is venturing into the UK market, making its international debut by offering British retail investors access to more than 6,000 US-listed stocks and other securities.
This move follows the company’s success in the US during the Covid pandemic, where it gained popularity among first-time investors during the “meme-stock” frenzy.
While the enthusiasm among retail investors has cooled, Vlad Tenev, Robinhood’s CEO and co-founder, aims to disrupt the UK market by offering a range of attractive features.
Tenev stated, “We’d like to help lower fees for all customers in the UK, just like we did in the US back in 2019, right before Covid.”
The features include 5% interest on uninvested cash, zero trading commission, currency fees, and trading outside of market hours. Users can join a waitlist now, and the service aims to be fully available starting in 2024.
Despite facing regulatory scrutiny in the US for its role in the “meme-stock” frenzy and accusations of encouraging excessive risk-taking, Robinhood has ambitious plans for international expansion.
The company will compete with local platforms like Revolut and Freetrade, as well as US-based rival Public.com, which expanded to the UK in July.
Tenev believes that Robinhood’s technology-focused approach gives it an edge in expanding globally.
He emphasized, “The fact that we’ve built this platform from the ground up and we’re a technology company and financial services, not a brick and mortar institution, I think makes us more able to expand internationally in ways that traditional financial institutions can’t.”
Robinhood also plans to introduce crypto trading in the European Union in the coming weeks, further diversifying its offerings beyond traditional stocks.
Despite a recent 11% decline in transaction-based revenues in Q3 2023, Robinhood continues to explore new revenue streams, including the launch of a credit card in the US.
The company’s shares, although up 10% this year, remain 90% lower than their peak.
Global Bonds Surge at Swiftest Pace Since 2008 Crisis as Rate Hike Speculations Subside
Oppenheimer Acquires Full Control of Nigeria’s GZ Industries in Bet on Economic Revival
MicroStrategy Chairman Michael Saylor Bolsters Bitcoin Bet with $593.3 Million Purchase
Coinbase’s November Surge Sparks Investor Enthusiasm Amid Crypto Volatility
Finance4 weeks ago
Black Market Exchange Rate Today 6th November 2023
Business2 weeks ago
Nigeria’s Logistics Sector Holds Untapped N3tn Potential, Says Courier and Logistics Management Institute
Black Market Rate3 weeks ago
Black Market Exchange Rate Today 14th November 2023
News3 weeks ago
Millionaire Powerplay Limited Unveils Unprecedented Odds in American Lotto’s Instant Cashless Payout
News3 weeks ago
N-Power Batch C1 Programme Successfully Concluded, Investigation Ensures Eligible Beneficiaries Receive Payments
Black Market Rate3 weeks ago
Black Market Exchange Rate Today 9th November 2023
Forex2 weeks ago
Black Market Exchange Rate Today 16th November 2023
Forex3 weeks ago
Black Market Exchange Rate Today 10th November 2023