Economy
Trump’s Trade Deal Comments Collapse European Markets
By Investors Hub
European markets are mostly lower on Wednesday amid renewed concerns about the U.S.-China trade war after U.S. President Donald Trump threatened to impose even higher tariffs on Chinese goods if a trade deal is not made between the two countries. Ongoing protests in Hong Kong have also weighed on sentiment.
After some positive news during the course of the previous week and over the weekend about the two countries closing in on an interim trade deal, optimism about a trade deal faded on Monday after it was reported that Trump is reluctant to roll out tariff cuts.
Now, with the U.S. President coming out with a threat to impose even higher tariffs on Chinese goods, investors are worried about further delays before the two countries agree on a pact.
While the U.K.?s FTSE 100 Index has slumped by 0.9 percent, the German DAX Index is down by 0.6 percent and the French CAC 40 Index is down by 0.3 percent.
In Germany, Wirecard shares have come under pressure after Ernest Young auditors refused to certify the 2017 annual balance sheet of Wirecard’s Singapore subsidiary.
Deutsche Bank, Continental, Infineon, Fresenius, Bayer, Covestro, Lufthansa, BASF, BMW and Volkswagen are also posting notable losses.
In the French market, Accor, ArcelorMittal, Renault, Essilor, Societe Generale, Schneider Electric, Saint Gobain and Total have declined sharply.
U.K. stocks are notably lower with trade war worries outweighing some upbeat corporate earnings reports and prompting investors to exit counters.
Among the stocks in the key index, Kingfisher, SAGE Group, Aviva, Pearson and 3i Group are sharply lower.
NMC Health, Taylor Wimpey, Legal & General, Tui, DCC, Rolls Royce Holdings, Rio Tinto, Prudential and Standard Chartered are also down with notable losses.
On the economic front, Germany producer prices declined for the second straight month in October largely driven by energy prices, data from Destatis showed.
Producer prices fell by 0.6 percent year-on-year in October, bigger than the 0.1 percent drop in September. This was the second straight decrease. Economists had forecast an annual 0.4 percent decrease.
On a monthly basis, producer prices dipped 0.2 percent, in contrast to a 0.1 percent increase in September. Prices were forecast to rise 0.1 percent.
The European Central Bank said in its Financial Stability Review that the euro area financial stability environment remains challenging and non-banks have increased their exposure to riskier assets to address profitability challenges.
The bank noted that investment funds and insurers increased their investment in high yield securities. The search for yield led them to assets of emerging market economies.
The central bank said signs of excessive risk-taking in some sectors require monitoring and targeted macro-prudential action in some countries.
By Adedapo Adesanya
VFD Group Plc has announced its intention to list its shares on the Nigerian Exchange Group (NGX) after leaving the NASD Over-the-Counter Securities Exchange, where it has been trading its stocks for the past three years.
This development, according to analysts, is a strategic move that would allow the company to gain access to public equity markets, increase its visibility, and strengthen its financial position.
VFD Group Plc is a leading proprietary investment company with a proven track record of generating attractive returns for its investors through a variety of investment strategies.
The company has a diverse portfolio of investments in various sectors, including banking, technology, media, energy, and real estate. The group has been listed on the NASD OTC Securities Exchange since 2020.
Speaking on this big step, Mr Nonso Okpala, Group Managing Director of VFD Group, stated, “We are excited to take this next step in the evolution of our company.”
“Listing on a major stock exchange will give us access to a larger pool of investors, enhance our profile, and provide superior returns to our investors,” he added.
With the intention of listing on the NGX, the company will delist from the NASD and is subject to regulatory approvals and market conditions.
VFD Group noted that it would provide additional updates as the listing process progresses.
At the close of business on Tuesday, the securities of the organisation closed on the NASD OTC exchange at N244.88 per unit, the same rate they finished in the preceding trading session.
Business Post reports that the NASD was created to provide an avenue for public companies to transition smoothly into the country’s main stock exchange.
However, it has witnessed the movement of firms from the NGX to the NASD, especially due to the very strict regulatory requirements by the former.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange registered a 0.28 per cent drop on Tuesday, June 6, as the duo of Niger Delta Exploration and Production (NDEP) Plc and FrieslandCampina WAMCO Nigeria Plc made losses.
FrieslandCampina Wamco Nigeria Plc lost N1.26 in value to trade at N69.74 per unit versus N71.00 per unit, as NDEP Plc depreciated by N1.06 to close at N245.15 per unit compared with the previous day’s N246.21 per unit.
The duo suppressed the 1 Kobo price appreciation reported by Acorn Petroleum Plc, closing at 16 Kobo per share compared with the preceding session’s 15 Kobo per share.
This development weakened the market capitalisation of the NASD OTC bourse by N2.78 billion to wrap the day at N1.005 trillion compared with Monday’s N1.008 trillion, as the NASD Unlisted Securities Index (NSI) moved down by 2.00 points to 726.86 points from 728.86 points.
At the market yesterday, the trading value slumped by 75.0 per cent as a total of N35.7 million stocks were transacted in comparison to Tuesday’s N142.9 million worth of securities.
At the close of business, the trading volume slid by 93.9 per cent to 1.4 million units from the previous day’s 22.7 million, as the number of deals carried out during the session decreased by 43.8 per cent to 27 deals from the 48 deals executed in the previous session.
Geo-Fluids Plc remained the most traded stock by volume on a year-to-date basis with a turnover of 832.1 million units valued at N1.3 billion, Industrial and General Insurance (IGI) Plc has transacted 628.3 units worth N49.5 million, while UBN Property Plc has traded 395.9 million units valued at N336.6 million.
On its part, VFD Group Plc remained the most traded stock by value on a year-to-date basis with 11.0 million units worth N2.5 billion, Geo-Fluids Plc has exchanged 832.1 million units worth N1.3 billion, and FrieslandCampina Wamco Nigeria Plc has sold 17.5 million units for N1.2 billion.
By Adedapo Adesanya
The Naira showed no signs of regaining strength in the parallel market and the Peer-to-Peer (P2P) segments of the foreign exchange (forex) market, as it further depreciated against the United States Dollar on Tuesday, June 6.
The Nigerian Naira weakened against the Dollar during the session by N2 in the black market to sell for N752/$1 compared with the preceding session’s rate of N750/$1.
In the P2P forex window, the value of the Nigerian currency lost N5 against the greenback to settle at N770/$1, in contrast to the previous day’s value of N775/$1.
However, in the Investors and Exporters (I&E) segment of the FX market, the exchange rate of the Naira to the Dollar remained unchanged at N464.67/$1 on Tuesday.
According to data obtained from FMDQ Securities Exchange, the turnover for the session was $186.02 million, 140.1 per cent or $108.54 higher than the $77.48 million published on Monday.
In the interbank segment, the Naira gained N6.08 against the Pound Sterling to close at N572.68/£1 versus Monday’s N578.76/£1 and against the Euro, while it appreciated by N3.13 to trade at N494.26/€1 versus N497.39/€1.
The cryptocurrency market recorded a recovery movement even as the US Securities Exchange moved to clampdown on major exchanges, Binance and Coinbase.
In an emergency motion for a temporary restraining order filed against Binance on Tuesday, the SEC said it has made this decision to “ensure the safety of customer assets.”
The filing also claims that Binance has engaged in “violative conduct” for years in “disregard of the laws of the United States, evasion of regulatory oversight, and open questions about various financial transfers and the custody and control of Customer Assets.”
Also, the SEC filed a lawsuit against Coinbase, alleging that the US crypto exchange has been selling unregistered securities.
The markets had initially reacted in a panicked fashion, with the crypto market tumbling but making a reversal as investors weighed the development.
Bitcoin (BTC) jumped by 4.5 per cent to $26,925.04, Ethereum (ETH) grew by 3.5 per cent to $1,880.47, Dogecoin (DOGE) rose by 4.7 per cent to $0.0697, Ripple (XRP) expanded by 3.9 per cent to $0.5303, and Litecoin (LTC) improved by 3.5 per cent to $90.63.
Further, Solana (SOL) appreciated by 1.2 per cent to $20.20, Binance Coin (BNB) recorded a 0.5 per cent growth to trade at $279.07, while Cardano (ADA) declined by 1.4 per cent to $0.3466, as Binance USD (BUSD) and the US Dollar Tether (USDT) retained parity at $1.00 apiece.
