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Japan Shares Fall on Yen Gain

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  • Japan Shares Fall on Yen Gain

Japanese shares fell for a second day after the yen touched the highest since November while Treasuries held gains that had been spurred when President Donald Trump targeted reworking America’s trade relationships. The dollar pared declines that had come after Treasury Secretary nominee Steven Mnuchin commented on currency strength.

The Topix Index fell 0.4 percent as of 9:46 a.m. in Tokyo, while equities advanced in Australia. Futures on the S&P 500 Index were little changed after the benchmark declined Monday, when European shares fell to the lowest level of 2017. Gold retreated after touching the highest since November and 10-year Australian yields fell a second day.

While investors have been looking for details on campaign promises to boost growth and government spending, much of the incoming administration’s initial pronouncements targeted trade or pushed companies to invest more inside the U.S. Mnuchin flagged concerns about China’s trade and exchange rate policies and said the administration would focus on infrastructure spending. President Trump promised a “very major” border tax and signed an executive order to withdraw the U.S. from the Trans-Pacific Partnership deal. He announced on the weekend he’d seek to renegotiate the North American Free Trade Agreement.

“The first couple of days of the new presidency have seen the rhetoric weighted toward protectionist policies while little detail is yet available on stimulus measures,” said Ric Spooner, Sydney-based chief analyst at CMC Markets Asia Ltd. “Unwinding free trade agreements and imposing border taxes is seen by markets as a negative for the dollar, which is not being helped by statements from the U.S. Treasury secretary about it being overvalued.”

Money managers will be dissecting earnings from some of the world’s largest companies this week with Alphabet Inc. and Alibaba Group Holding Ltd. among those reporting results.

Here are the main moves in markets:

Stocks

  • The Nikkei 225 Index fell 0.4 percent. Futures on the FTSE China A50 advanced 0.2 percent, while those on the Hang Seng Index were little changed.
  • The MSCI Asia-Pacific Index was little changed.
  • Australia’s S&P/ASX 200 Index rose 0.5 percent, after a two-day slide, while New Zealand stocks retreated 0.2 percent and South Korea’s Kospi lost 0.1 percent.
  • The S&P 500 Index fell 0.3 percent to 2,265.20. The Dow Jones Industrial Average slid to 19,799.85, clinging to a 0.2 percent advance in 2017.
  • The Stoxx 600 benchmark index of European shares fell 0.4 percent to the lowest close since December.
  • The MSCI Emerging Market Index rose 0.1 percent to add to its 1 percent jump on Monday.

Currencies

  • The yen declined 0.2 percent to 112.87 per dollar, after jumping 1.7 percent the previous session. The Australian and New Zealand dollars were little changed after each advanced more than 0.2 percent to reach levels last seen in November.
  • The Bloomberg Dollar Spot Index slid 0.2 percent to the lowest since Dec. 8, after dropping 0.7 percent on Monday. It has fallen for four straight weeks, the longest retreat since February.

Bonds

  • Australian bonds gained in the wake of Treasuries, with the yield on 10-year notes down four basis points to 2.72 percent.
  • The yield on the 10-year Treasury was steady at 2.40 percent after it declined seven basis points Monday; bonds had extended their rally after Trump vowed “a very major border tax” on imports in a meeting with business leaders.

Commodities

  • Gold was down 0.1 percent after climbing 0.7 percent Monday and touching a two-month high of $1,220.26 an ounce.
  • West Texas Intermediate crude oil rose 0.3 percent to $52.89 a barrel. It slid 0.9 percent the previous session after U.S. drillers added the most rigs in more than three years, making it difficult for OPEC to drain global oversupply.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Forex

Naira to Dollar Rate Today: Naira Exchanges at N463 to Dollar on Black Market

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Naira to Dollar Rate on Black Market Today Stood at N463

The Nigerian Naira to dollar rate slid slightly against the United States dollar on Tuesday on the black market as social unrest continues to weigh on the nation’s economic outlook.

The local currency lost N1 against the US dollar to N463 while against the British pound it remains pressured at N592.

This decline continues against the European Union’s common currency, the Euro. The Naira traded at N540 to a single Euro on the black market.

Naira to dollar rate plunged amid rising economic uncertainties and unclear policy path caused by both COVID-19 and government limited fiscal buffers to cushion the negative impacts of the virus on Africa’s largest economy.

This coupled with the ongoing social unrest by the Nigerian youths to force decorum across the Nigerian Police Force and call global attention to decades of systemic intimidation and harassment of innocent citizens.

The Nigerian Stock Exchange has been closing flat since Thursday and continued this week, suggesting that investors are concerns and wary of eventualities as they look to safeguard their investments.

Again, the projected third-quarter recession, low foreign revenue generation, weak consumer spending and the rising cost of living are some of the factors hurting the Nigerian Naira outlook.

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Naira to a Dollar Exchange Rate Dips to N462 at Black Market Amid Social Unrest

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Youth Protests Weigh on Naira to a Dollar Exchange Rate on Black Market

The ongoing youth protest in Nigeria continues to weigh on the economic outlook and investors’ sentiment across the board.

The Nigerian Naira to a US dollar exchange rate declined by N1 from N461 on Tuesday to N462 on Wednesday and in the early hours of Thursday at the black market.

Against the British Pounds, the Naira exchanged at N600, down from the N592 it traded on Tuesday. This decline continues against Europe’s common currency as the Naira dipped against the Euro by N2 from N538 to N540 on the black market.

The nationwide protest by the Nigerian youth to curb police brutality and harassment on daily basis continues to disrupt business activities in Africa’s largest economy.

Nigerian youths are saying enough is enough after the death of several youths by the law enforcement agency, Special Anti-Robbery Squad (SARS), that was constituted to curb robbery but gone rogue and made extortions, harassments and in some cases killing of innocent citizens their means of livelihood.

Despite the government disbanding the unit and promise to redeploy officers to other existing units, commands and formations, the youths are saying they want a total discharge of corrupt officers and the entire reform of the Nigerian Police Force (NPF) before they will even consider backing down on the ongoing protest, especially after politicians started sponsoring thugs to attack peaceful protesters in Lagos and Abuja.

The Nigerian Stock Exchange closed flat on Wednesday amid rising uncertainty surrounding the government’s ability to de-escalate the situation given the fact that the youths no longer trust the administration or Nigerian government.

The Naira remained weak against global counterparts and expected to plunge further once the National Bureau of Statistics (NBS) release third-quarter Gross Domestic Product (GDP) report expected by many experts to plunge the nation into its second recession in four years.

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Naira Declines on the Black Market on Tuesday

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Naira Plunges Against Global Counterparts on Tuesday on the Black Market

The Nigerian Naira declined on Tuesday on the black market despite efforts by the Central Bank of Nigeria to prop up the value of the local currency against global counterparts.

The Naira declined by N4 from N457 per US dollar it traded on Friday to N461 on Tuesday morning. Against the European common currency, the Naira fell by N1 to N538 from N537.

However, the local currency improved by N3 against the British pound from N595 it exchanged on Friday to N592 on Tuesday.

Nigeria’s weak economic outlook continues to weigh on the Naira outlook, especially with the economy projected to enter recession in the third quarter.

Despite efforts to cushion the negative effect of COVID-19 on the nation’s economy, unclear policy path amid weak business sentiment and low foreign revenue generation needed to sustain economic productivity in a majorly import-dependent economy drag on Nigerian Naira value and the entire economic outlook.

 

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