Connect with us

Uncategorized

Stocks, Currencies Gain as Investor Optimism Grows over US-China Trade Deal

Published

on

Kindly share this post

By Han Tan, Market Analyst at FXTM,

Most Asian stocks and currencies are gaining as investors grow increasingly hopeful that the US and China can reach a trade deal on Friday. There’s a clear risk-on mood in the markets at the expense of safe haven assets, as Gold trades below $1500, yields on 10-year US Treasuries breach 1.65 percent, and USDJPY breaks above the psychological 108 level for the first time since October 1.

Investors are ready to celebrate any form of a US-China trade deal, even an interim one, having endured trade-related volatility since May. The amount of market fanfare will correspond with the contents of the actual deal, assuming one will be announced later today. Investors are in sore need of a solid pick-me-up beyond mere whispers of a trade pact, and a formal agreement is likely to sustain risk sentiment for the rest of 2019. Still, investors are cognizant that a trade pact that marks a pause in tariff hikes without rolling back any of the tariffs imposed since last year would not solve all of the global economy’s existing problems.

At the other end of market expectations, failure to come to any agreement this week may have dire consequences for the global economy. Keep in mind that the US administration had threatened to raise existing tariffs on $250 billion worth of Chinese goods by 5 percentage points to 30 percent on Tuesday, with potentially more tariffs to follow in December.

 

Whiffs of Brexit deal send Pound on steepest climb in seven months

Risk sentiment is also being boosted by reports of another crucial deal becoming likelier across the Atlantic.

UK Prime Minister Boris Johnson and Irish premier Leo Varadkar said they have identified a “pathway” towards a Brexit deal. Following the news, GBPUSD breached the 1.245 mark for the first time since September 25 after seeing its biggest one-day jump in seven months, before moderating slightly to converge around its 100-day moving average.

With three weeks remaining before the existing October 31 deadline, markets can expect more twists and turns in the Brexit saga, as has been the case since 2016. This uncertainty also means that the Pound will be highly volatile as the UK endeavours to find its way out of the European Union. The 1.20 level remains the floor supporting Sterling, unless a no-deal Brexit becomes an absolute certainty.

 

US-China trade deal to act as Brent boost

Brent futures could carve out a path back towards $64/bbl in the event that a US-China trade deal is announced going into the weekend. Despite Brent futures now breaking above the psychological $60/bbl level following news of an Iranian tanker catching fire, investors’ focus remains primarily on the outcome of the trade negotiations in Washington.

Oil markets have been weighed down by demand-side uncertainties, as heightened tariffs have choked global trade. Even in the event of a trade truce, the tariffs that remain in place however will limit Oil’s upside, barring any tightening in global supplies. This could come via a spike in geopolitical tensions involving major Oil producers or a tighter supply-cuts programme by OPEC+.


Kindly share this post

Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University.

Continue Reading
Comments

Uncategorized

CBN Pulls Rate Cut Trigger, King Dollar Returns

Published

on

Kindly share this post

By Lukman Otunuga, Senior Research Analyst at FXTM,

In a move that caught investors off-guard this week, the Central Bank of Nigeria (CBN) slashed interest rates by 100 basis points bringing the MPR to 11.5%. Given how inflation has been above target since 2015, rates were expected to remain unchanged for the rest of 2020 and possibly early 2021.

 

The question on the mind of many is whether the rate cut will achieve the desired effect by stimulating consumption and economic growth? Ongoing border closures and disruptions created by COVID-19 have pushed inflation to levels not seen since March 2018 above 13.20% while a drop in the production and price of Oil continues to rub salt into the wound. While looser monetary policy could support growth, it may come at the cost of rising inflation and weaker Naira.

 

Over the past few months, central banks across the globe have deployed unprecedented measures to defend their respective economies against the coronavirus menace. However, fiscal policy has been identified as the sharper tool with governments across the world providing a critical lifeline to keep the wheels of their respective economies rolling.

 

Outside of Nigeria, King Dollar made a return by appreciating against every single G10 currency. In times of uncertainty, everyone wants a juicy piece of the world’s most liquid currency. As coronavirus cases rise in Europe and other parts of the world, the flight to safety is likely to boost appetite for the Dollar. This is bad news for many emerging markets currencies, especially those with high Dollar-denominated debt.

 

On the commodity side, Oil prices remain heavily influenced by demand-side factors and the state of the global economy. Prices are likely to remain stuck around the $40 regions in the near term, especially If another round of possible lockdowns hit Oil demand. Looking at the technicals, WTI Crude is under pressure on the daily charts. If prices are unable to break away from the sticky $40 regions, the next key point of interest remains around $38. A weekly close above $41.50 could pave a path towards $43.


Kindly share this post
Continue Reading

Uncategorized

NCC Arrests Man for Hacking into DSTV System

Published

on

Kindly share this post

Nigeria Copyright Commission (NCC), has arrested one Mr Aliu Olalekan, for allegedly hacking into DSTV system and watching the channels free without subscription.

NCC Arrests Man for Hacking into DSTV System

Mr Matthew Ojo, NCC Director in the Lagos Directorate Office said this while speaking with newsmen in Lagos, on Tuesday.

He said that the suspect used to watch DSTV channels free without subscription on his Android phone via an app which he downloaded on google play store.

“This suspect distributed the know-how to his telegram followers and on his blog with the aim of gaining more followers and viewership on his blog and makes more money through google ad-sense.

“The operation was based on surveillance which had earlier been carried out by the Multi-choice team and verified by a copyright inspector, ” he said.

He added that the arrest was made in collaboration with a team of copyright inspectors led by the Head of Enforcement Department, Mr Charles Amudipe.

Others included; a team from Multichoice Nigeria led by Mr Umar Ibrahim and policemen from Lagos Command Headquarters, Ikeja.

Ojo said that the joint team conducted an anti-piracy operation at the premises of the culprit in Amukoko, Lagos.

According to him, the suspect was contacted on phone by a member of the operation team on the disguise of patronising him. “The suspect came out to meet the caller and in the process of discussion, he was apprehended.

“The suspect took the team to his resident. The squad paraded his one-room apartment and recovered his laptop and phones used in perpetrating the ungodly act. “He was arrested and brought to the copyright commission office for further investigation, ” he said.

Ojo said that, on getting to the commission’s office, the statement of the suspect was taken and the inventory of items seized from him taken. He said that investigation on the matter was still ongoing and if found guilty the suspect will be charged to court.

 


Kindly share this post
Continue Reading

Uncategorized

NCC, Digital Encode Support NITRA Innovative Tech Forum On Post-COVID-19 Strategies

Published

on

Kindly share this post

The Nigerian Communications Commission (NCC), Nigeria’s telecommunications regulator and Digital Encode, Cybersecurity and Compliance advisory company, have indicated interest to partner with the Nigeria Information Technology Reporters Association (NITRA), the national umbrella body of ICT reporters, as it organizes a forum that will x-ray the industry’s future plans for ICT growth post pandemic era.

 

The event, slated to hold on October 15, 2020, will seek to discuss the needs for a fortified ICT sector after the COVID-19 era, and the level of preparedness of ICT stakeholders to embrace the challenge of being pivotal to the stability and growth of all other sectors.

 

A statement from NITRA National Secretariat in Lagos indicates that due to the pandemic and need to observe the COVID-19 protocol on social distancing, the event will be held via a Webinar.

 

This year’s theme, “Multi-stakeholder Approach To National Recovery Post-Pandemic”, is in line with the annual event’s generic theme, ‘NITRA Innovative Tech Forum’, a contribution by NITRA to the development of Information and Communication Technologies (ICTs) innovations and policies in Nigeria.

 

Prof. Umar Danbatta, executive vice chairman, NCC is expected to deliver the keynote speech at the event and will throw more light on Federal Government’s plans, programmes and policies on post-pandemic strategies using ICT.

 

Dr. Adewale Obadare and Dr. Seyi Akindeinde, founders of Digital Encode, while accepting to support the event expressed their readiness to offer their expertise in Cybersecurity for organisations to prepare against cyber- attacks with the new normal.

 

They will also highlight areas that are high risks that need fortification in terms of cybersecurity.

 

Speaking on the event, Mr. Chike Onwuegbuchi, national chairman, NITRA, noted that as the COVID-19 pandemic continues to leave its negative trails across the globe, economic reboot for countries will not only depend on how well they readapt to the new normal, but also more on their recovery plans.

 

According to him: “While the federal government has consistently expressed its willingness to set all policies in place to engender growth, and accelerated implementation of these policies, private sector firms have also shown great hunger for the task ahead in post-COVID-19 era.

 

However, the question that needs to be answered is whether all stakeholders are ready for the required task ahead.”

 

The event will also offer participating companies opportunities to publicize some of their individual efforts at contributing to reacting a soft landing or lifeline for SMEs and other ancillary companies as the pandemic threatens their survival.

 

Digital Encode is a multi-award winning and leading consulting and integration firm that specializes in the design, management, and security of business-critical networks, telecommunications environments and other Information Technology (IT) infrastructures.

 


Kindly share this post
Continue Reading
Advertisement

Social

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Trending