Economy
US Stocks Open Higher Despite Talks on Delisting Chinese Firms
By Investors Hub
The major U.S. index futures are currently pointing to a modestly higher opening on Monday, with stocks likely to move back to the upside following the weakness seen last Friday.
Early buying interest may be generated in reaction to news that a Treasury Department spokeswoman denied reports the Trump administration is considering delisting Chinese companies from U.S. stock exchanges
?The administration is not contemplating blocking Chinese companies from listing shares on U.S. stock exchanges at this time. We welcome investment in the United States,? Treasury spokeswoman Monica Crowley said in a statement.
Crowley?s statement comes on the heels of reports suggesting the administration is contemplating ways to curb U.S. investments in China.
White House trade advisor Peter Navarro attacked the media reports in an interview with CNBC on Monday, claiming ?over half? of a Bloomberg report about potential restrictions was ?highly inaccurate or simply flat-out false.?
?This story was just so full of inaccuracies and in terms of the truth of the matter, what the Treasury said I think was accurate,? Navarro said.
Better than expected manufacturing data out of China may also temper some of the recent concerns about the impact of the U.S.-China trade war.
After seeing considerable volatility in the morning, stocks moved mostly lower over the course of the trading session on Friday. The major averages all slid firmly into negative territory, with the tech-heavy Nasdaq showing a particularly steep drop.
The major averages climbed off their worst levels going into the close but remained in the red. The Dow dipped 70.87 points or 0.3 percent to 26,820.25, the Nasdaq tumbled 91.03 points or 1.1 percent to 7,939.63 and the S&P 500 fell 15.83 points or 0.5 percent to 2,961.79.
For the week, the Nasdaq plunged by 2.2 percent, the S&P 500 slumped by 1 percent and the Dow dropped by 0.4 percent.
Stocks moved to the downside after a report from Bloomberg News said Trump administration officials are discussing ways to limit U.S. investors’ portfolio flows into China.
Citing people familiar with the internal deliberations, Bloomberg noted the move would have repercussions for billions of dollars in investment pegged to major indexes.
A source family with the matter confirmed to CNBC that the White House is weighing some curbs on U.S. investments in China but noted the discussions are in the preliminary stages and nothing has been decided.
The reports reflect the ever-changing landscape of U.S.-China relations that has kept traders reluctant to make significant bets.
Earlier in the day, traders expressed some optimism about U.S.-China trade talks after a report from CNBC said negotiations are set to resume October 10th in Washington.
A person close to the talks said Chinese Vice Premier Liu He would be representing the delegation from Beijing at the meetings.
The U.S. and China held deputy-level trade talks last week, although Treasury Secretary Steven Mnuchin called off a trip by Chinese officials to U.S. farms.
On the U.S. economic front, the Commerce Department released a report unexpectedly showing a modest increase in U.S. durable goods orders in the month of August.
The Commerce Department said durable goods orders rose by 0.2 percent in August after jumping by 2.0 percent in July. The continued increase surprised economists, who had expected orders to pull back by 1.0 percent.
Excluding a drop in orders for transportation equipment, durable goods orders increased by 0.5 percent in August after falling by 0.5 percent in July. Economists had expected ex-transportation orders to rise by 0.2 percent.
However, the report also said orders for non-defense capital goods excluding aircraft, a key indicator of business spending, edged down by 0.2 percent in August after coming in unchanged in July.
A separate Commerce Department report showed U.S. personal income rose in line with economist estimates in the month of August, although personal spending inched up by less than expected.
The Commerce Department said personal income climbed by 0.4 percent in August after ticking up by 0.1 percent in July. The increase in income matched economist estimates.
Meanwhile, the report said personal spending crept up by 0.1 percent in August after climbing by 0.5 percent in July. Spending had been expected to rise by 0.3 percent.
Semiconductor stocks showed a significant move to the downside over the course of the trading session, dragging the Philadelphia Semiconductor Index down by 2.4 percent.
Chipmaker Micron Technology (MU) led the sector lower after reporting better than expected fiscal fourth quarter results but providing disappointing guidance.
Considerable weakness was also visible among gold stocks, as reflected by the 2.1 percent slump by the NYSE Arca Gold Bugs Index.
The weakness in the gold sector came as the price of the precious metal climbed off its worst levels but still showed a notable decrease.
Software, telecom, and oil service stocks also came under pressure as the day progressed, moving lower along with most of the other major sectors.
By Adedapo Adesanya
Oil prices settled over 1 per cent higher on Monday as the market weighed the prospect of renewed US-Iran negotiations against escalating supply risks following escalations in the Middle East.
Brent crude futures gained $1.12 or 1.3 per cent to trade at $89.22 per barrel, while the US West Texas Intermediate (WTI) crude soared by 74 cents or 0.9 per cent to $83.23 a barrel.
The Middle East conflict escalated over the weekend, with the US conducting a ninth straight night of attacks against Iran, while American allies Kuwait and Bahrain reported more Iranian strikes.
Traders weighed hopes of renewed US-Iran negotiations against Yemen’s Houthis’ imposition of a naval blockade against Saudi Arabia. The group said the “maritime embargo” was retaliation for what it described as a Saudi siege of Yemen.
This development brings the US-Iran war officially to the southern entrance of the Red Sea and threatens an export route used by Saudi Arabia to bypass disruptions in the Strait of Hormuz. About 20 per cent of global oil supplies flowed through the waterway.
Iran had previously instructed the Houthis to prepare to close the Bab el-Mandeb Strait if the US continued attacking Iranian power infrastructure. A full closure could disrupt oil shipments equivalent to about 7 per cent of global supply.
Meanwhile, Iran has received a proposal for a 10-day ceasefire, and both Iran and the US have left open the possibility of renewed negotiations.
Market analysts noted that if a ceasefire does not materialise and the Strait of Hormuz remains largely closed while the Houthi threat to Red Sea shipping intensifies, the risk of a significant rebound in oil prices would be substantial.
Kpler analysts said in a note that there is also the possibility that a record amount of crude oil on water, estimated at around 1.35 billion barrels, could limit the next leg of oil price increases.
A drone struck a tanker loading crude oil at the Caspian Pipeline Consortium’s (CPC) Black Sea export terminal on Monday, forcing the suspension of exports for the second time in less than 24 hours.
The CPC system accounts for roughly 1 per cent of global oil supply, carrying crude primarily from Kazakhstan’s giant Tengiz, Kashagan and Karachaganak fields, with additional volumes from Russian producers in the Caspian region.
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
