Weekly Market Insights: Global Trends and Local Implications
- Global markets continued to tilt toward monetary easing, with the U.S. Federal Reserve and the Bank of England cutting rates, while several other central banks either eased policy or signaled flexibility.
- This strengthens expectations that Nigeria could begin a gradual rate-cut cycle in 2026, especially as domestic yields continue to soften.
- Concerns around crude oil oversupply intensified, with oil prices dipping further last week to an average of $58.89 per barrel.
- This has compounded Nigeria’s challenges in placing over 20 million barrels of crude oil for December and January loading.
- As anticipated, the naira faced less pressure last week compared with the prior week.
- Looking ahead, the naira may see modest support from reduced liquidity pressure, as maturing securities, particularly OMO maturities, are lower this week, although persistent weakness in crude oil prices remains a key downside risk.
- Projected maturities of N849.19 billion this week are expected to provide moderate support for system liquidity, slightly higher than last week’s N712.68 billion.
- The equities market extended its positive momentum, with the NGX-ASI rising 1.76% WoW, pushing year-to-date returns higher to 47.73%
