Economy

US Stocks May Lack Direction Ahead of Yellen Testimony

Published

7 years ago

10/07/2017

By Investors Hub

Major U.S. index futures are pointing to a mixed opening on Monday, with the Dow futures up by down by 28 points and the Nasdaq futures up by 4.5 points.

Traders may be reluctant to make any significant moves ahead of Federal Reserve Chair Janet Yellen’s semiannual testimony before Congress.

Yellen is due to testify before the House Financial Services Committee on Wednesday and before the Senate Banking Committee on Thursday.

The comments from the Fed Chief could have a significant impact on the outlook for interest rates ahead of the central bank’s monetary policy meeting later this month.

After showing a significant move to the downside last Thursday, stocks regained some ground during trading on Friday. The Nasdaq and the S&P 500 rebounded after ending Thursday’s trading at their lowest closing levels in over a month.

The major averages finished the day firmly in positive territory. The Dow climbed 94.30 points or 0.4 percent to 21,414.34, the Nasdaq jumped 63.61 points or 0.1 percent to 6,153.08 and the S&P 500 advanced 15.43 points or 0.6 percent to 2,425.18.

For the holiday-interrupted week, the major averages moved modestly higher. While the Dow rose by 0.3 percent, the Nasdaq edged up by 0.2 percent and the S&P 500 inched up by 0.1 percent.

The rebound on Wall Street came following the release of a report from the Labor Department showing much stronger than expected job growth in the month of June.

The report said non-farm payroll employment jumped by 222,000 jobs in June following an upwardly revised increase of 152,000 jobs in May.

Economists had expected employment to climb by 179,000 jobs compared to the addition of 138,000 jobs originally reported for the previous month.

Despite the stronger than expected job growth, the unemployment rate inched up to 4.4 percent in June from 4.3 percent in May. Economists had expected the unemployment rate to hold steady.

The Labor Department also said average hourly employee earnings rose by 0.2 percent to $26.25. Average hourly earnings in June were up by 2.5 percent year-over-year.

“This was a strong jobs report, with a better-than-expected payroll rise augmented by a solid upward revision,” said Chris Low, chief economist at FTN Financial.

He added, “Still, it should not add to the already considerable fire under the FOMC because wage pressures are nowhere to be seen, and labor slack relaxed unexpectedly.”

The Federal Reserve is scheduled to make its next decision on interest rates following a two-day meeting later this month.

Traders also kept an eye on developments out of the G20 summit in Hamburg, Germany, where President Donald Trump held his first face-to-face meeting with Russian President Vladimir Putin.

Secretary of State Rex Tillerson told reporters Trump and Putin had a “very robust and lengthy exchange” about alleged Russian meddling in last year’s presidential election.

Tillerson said Trump and Putin also reached an agreement on a ceasefire in Syria, which he called the first indication the countries can work together to curb the violence in the war-torn country.

Airline stocks moved sharply higher over the course of the trading session, driving the NYSE Arca Airline Index up by 2.6 percent. With the jump, the index reached its best closing level in over fifteen years.

SkyWest (SKYW), Ryanair (RYAAY) and Alaska Air (ALK) turned in some of the sector’s best performances in late-day trading.

Considerable strength was also visible among semiconductor stocks, as reflected by the 1.7 gain posted by the Philadelphia Semiconductor Index. The index climbed further off the nearly two-month closing low set on Monday.

Networking also turned in a strong performance, resulting in a 1.4 percent advance by the NYSE Arca Networking Index. The gain by the index came after it ended the previous session at its lowest closing level in over a month.

Internet, housing, and software stocks also saw notable strength on the day, while gold stocks came under pressure amid a slump by the price of the precious metal.

Economy

Dangote Refinery Makes First PMS Exports to Cameroon

Published

43 minutes ago

12/12/2024

Aduragbemi Omiyale

By Aduragbemi Omiyale

The Dangote Refinery located in the Lekki area of Lagos State has made its first export of premium motor spirit (PMS) just three months after it commenced the production of petrol.

In September 2024, the refinery produced its first petrol and began loading to the Nigerian National Petroleum Company (NNPC) on September 15.

However, due to some issues, the facility has not been able to flood the local market with its product, forcing it to look elsewhere.

In a landmark move for regional energy integration, Dangote Refinery has partnered with Neptune Oil to take its petrol to neighbouring Cameroon.

Neptune Oil is a leading energy company in Cameroon which provides reliable and sustainable energy solutions.

Dangote Refinery said this development showcases its ability to meet domestic needs and position itself as a key player in the regional energy market, adding that it represents a significant step forward in accessing high-quality and locally sourced petroleum products for Cameroon.

“This first export of PMS to Cameroon is a tangible demonstration of our vision for a united and energy-independent Africa.

“With this development, we are laying the foundation for a future where African resources are refined and exchanged within the continent for the benefit of our people,” the owner of Dangote Refinery, Mr Aliko Dangote, said.

His counterpart at Neptune Oil, Mr Antoine Ndzengue, said, “This partnership with Dangote Refinery marks a turning point for Cameroon.

“By becoming the first importer of petroleum products from this world-class refinery, we are bolstering our country’s energy security and supporting local economic development.

“This initial supply, executed without international intermediaries, reflects our commitment to serving our markets independently and efficiently.”

Economy

Strong Investor Sentiment Keeps NGX Index in Green Territory by 0.31%

Published

1 hour ago

12/12/2024

Dipo Olowookere

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited remained in the green territory on Wednesday after it rallied by 0.31 per cent on the back of sustained bargain-hunting activities by investors.

Business Post reports that all the key sectors of the market closed higher at midweek as a result of the renewed interest in local equities.

Data showed that the energy index appreciated by 2.59 per cent, the insurance space grew by 2.34 per cent, the industrial goods sector improved by 0.15 per cent, the banking counter expanded by 0.06 per cent, and the consumer goods industry rose by 0.04 per cent.

At the close of business, the All-Share Index (ASI) gained 302.71 points to settle at 98,509.68 points compared with Tuesday’s closing value of 98,206.97 points and the market capitalisation added N183 billion to close at N59.715 trillion versus the preceding day’s N59.532 trillion.

It was observed that the level of activity yesterday waned as the trading volume, value and number of deals decreased by 65.93 per cent, 49.22 per cent, and 12.70 per cent, respectively.

On Wednesday, a total of 320.1 million stocks valued at N6.5 billion were transacted in 7,943 deals, in contrast to the 939.4 million stocks worth N12.8 billion traded in 9,098 deals.

The busiest equity at midweek was eTranzact, which transacted 70.3 million units for N474.2 million, Universal Insurance traded 23.8 million units worth 8.1 million, Zenith Bank exchanged 21.2 million units valued at N933.5 million, FBN Holdings sold 18.6 million units worth N491.2 million, and UBA traded 14.0 million units valued at N465.8 million.

At the close of transactions, 34 shares ended on the gainers’ log and 17 shares finished on the losers’ chart, representing a positive market breadth index and strong investor sentiment.

Africa Prudential gained 10.00 per cent to quote at N14.30, Conoil also improved by 10.00 per cent to N352.00, and RT Briscoe expanded by 10.00 per cent to N2.42, as Golden Guinea Breweries jumped by 9.95 per cent to N7.18, while NEM Insurance grew by 9.74 per cent to N10.70.

However, Julius Berger lost 10.00 per cent to close at N155.25, Secure Electronic Technology shed 9.52 per cent to trade at 57 Kobo, Multiverse declined by 7.63 per cent to N5.45, Haldane McCall tumbled by 6.07 per cent to N4.95, and Honeywell Flour crashed by 5.62 per cent to N4.70.

Economy

Crude Oil Jumps as EU Slams Fresh Sanctions on Russia

Published

2 hours ago

12/12/2024

Adedapo Adesanya

By Adedapo Adesanya

Crude oil prices went up on Wednesday after the European Union (EU) agreed to an additional round of sanctions threatening Russian oil flows that could tighten global crude supplies.

During the session, Brent crude futures jumped by $1.33 or 1.84 per cent to $73.52 a barrel and the US West Texas Intermediate (WTI) crude futures rose by $1.70 or 2.48 per cent to $70.29 per barrel.

EU ambassadors agreed on a 15th package of sanctions on Russia over its war against Ukraine, targeting its shadow tanker fleet and Chinese firms making drones for the country.

The sanctions would target vessels from third countries supporting Russia’s war in Ukraine and add more individuals and entities to the sanctions list. It will not be adopted until after foreign ministers approve the package on Monday.

The shadow fleet has aided Russia in bypassing the $60 per barrel price cap imposed by the G7 on Russian seaborne crude oil in 2022 and has helped keep Russian oil flowing.

Prices were supported by the Energy Information Administration (EIA) which reported an estimated inventory decline of 1.4 million barrels for the week to December 6. In fuels, however, the EIA estimated sizable builds.

The crude oil inventory figure compares with a draw of 5.1 million barrels for the previous week that pushed prices higher for a while but the gains soon got erased by weak global demand growth prospects.

A day before the EIA, the American Petroleum Institute (API) had estimated inventory changes at a positive 499,000 barrels for the week to December 6.

Meanwhile, on Wednesday, the Organisation of the Petroleum Exporting Countries (OPEC) cut its 2024 global oil demand growth forecast for a fifth straight month and by the largest amount.

In its December report, the cartel expects 2024 global oil demand to rise by 1.61 million barrels per day, down from 1.82 million barrels per day last month.

OPEC also cut its 2025 growth estimate to 1.45 million barrels per day from 1.54 million barrels per day.

The 210,000 barrels per day cut in the 2024 figure is the largest of the five reductions OPEC has made in its monthly reports since August. In July, OPEC had expected world demand to rise by 2.25 million barrels per day.

Weak demand, particularly in top importer China, and non-OPEC+ supply growth were two factors behind the move.