General News
Stocks Continue to Wane Amid Higher Yields
By Han Tan, Market Analyst at FXTM
Global risk sentiment remains poor, as investors continue contending with this week’s surge in Treasury yields, with 10-year yields above the psychologically important 1.30% level at the time of writing. US stock futures are edging lower following three consecutive days of losses for the S&P 500 and the Nasdaq. Most Asian benchmark indices are currently in the red.
Market participants are willing to bet that the swathes of fiscal and monetary support for the US economy will lead to bigger inflationary pressures. Amid this Fed-fiscal fete, investors are trying to pre-empt when the central bank might ease up on its asset purchases which could then pave the way for a rate hike.
Reflation trade stoked by US economic optimism
Investors have been paring their exposure to equities as they attempt to sort through this conundrum, and it remains to be seen whether the reflation bet will be vindicated by a strong showing in US inflation.
Still, investors would be remiss if they were to already fully exclude the pandemic’s downside risks. Thursday’s larger-than-expected US weekly jobless claims dented some of the optimism surrounding the positive surprises earlier in the week, validating the Fed’s insistence that the US economy remains a “long way” from a full recovery.
The February US Markit PMIs due later today may add more colour to investors’ views as to whether the rosier economic outlook remains warranted.
Stocks to get more cues from the Biden-Powell show next week
In order for risk-on sentiment to be restored over the coming week, it may require the Biden-Powell tag team to really come through. Fed Chair Jerome Powell is set to deliver his semi-annual testimony before the Senate next Tuesday, and it remains to be seen whether the scheduled Fed speak over the coming days will help or hamper rising yields. Then, a week from today, President Joe Biden’s $1.9 trillion fiscal stimulus package could be put through its first floor vote in the House of Representatives.
The hopes for more incoming US fiscal stimulus remain a pillar for equity bulls, even though it may herald a ramping up of US inflationary pressures. Should the Fed be able to convince markets that any tapering remains a distant event, that should spell more upside for stock markets as they continue wallowing in the abundant money flows in the interim.
Gold losing out as inflation hedge
Spot gold has clearly languished in the wake of this surge in Treasury yields, with the precious metal trading around its lowest levels since July. Bullion is on course for seven consecutive days of losses, its longest losing streak since November 2018.
Gold is having a tough time trying to win investors over in validating its role as an inflation hedge, with other assets currying more favour instead. The optimism surrounding the US economic outlook also does not play into gold bulls’ hands, while the surge in Treasury yields is eroding demand for the non-yielding precious metal.
Until investors are shown real signs that inflation is picking up, they’re unlikely to have much reason to hold on to the precious metal in the interim. Gold’s waning appeal is evidenced by ETFs shedding their holdings by almost 974,000 ounces so far this year.
From a technical perspective, the downtrend remains firmly intact since posting that record high back in August. Having formed a death cross earlier this week, with the 100-day simple moving average (SMA) set to join its 50-day counterpart below the 200-day SMA, such a technical event typically heralds further declines over the near term. With momentum pointing south, coupled with the fact that prices have yet to conclusively drop into oversold territory, spot gold could yet dive closer towards the key psychological $1700 mark.
Nigeria’s Buy Now, Pay Later (BNPL) market is on a fast-growing trajectory and is predicted to be valued $2.61 billion by 2030, up 83% from $1.42 billion in 2024, owing primarily to the rapid emergence of fintechs in the country.
This observation was stated in EnterpriseNGR’s State of Enterprise 2025 report, which focuses on how fintechs are reshaping Nigeria’s business landscape through digital innovations, accessible credit systems, and mobile-first financial tools.
As a credit system, BNPL allows users to stagger payments for products and services, making it a key development driver in Nigeria’s developing digital economy.
From 2021 to 2024, the BNPL experienced a compounded annual growth rate of 23.1%. Fintechs have contributed to the rapid growth by providing a range of flexible loan alternatives for e-commerce, retail, and services, bridging financial gaps for millions of disadvantaged Nigerians.
The report highlights how fintechs have contributed to Nigeria’s flexibility and resiliency by simplifying digital payments, automating invoicing and payroll systems, and democratising credit through platforms such as Renmoney and FairMoney.
The report also shows a significant rise in remittance inflows into Nigeria following the Central Bank of Nigeria’s 2024 policy adjustments.
According to the report, by 2024, Nigeria boasted over 400 licensed digital lenders who extend collateral-free credit to those commonly excluded by banks.
The Nigeria Immigration Service (NIS) strengthened bilateral relations with the Netherlands’ government through an agreement targeted at improving migration governance and border security.
This partnership was confirmed during a meeting at the NIS headquarters in Abuja, which was attended by a Dutch team led by Jurgen Bartelink, Chargé D’Affaires of the Embassy of the Netherlands in Nigeria.
The meeting focused on increasing bilateral migration cooperation and came after the comptroller general of Immigration, Kemi Nandap, paid a working visit to the Netherlands.
Under the agreement, the Dutch government pledged to continue supporting technology-driven solutions targeted at boosting Nigeria’s border control systems and improving migration management.
During the Netherlands Embassy diplomats handed over essential operational tools, such as Edison Software licence keys and the Passport Examination Programme Manual App.
According to NIS spokeswoman ACI Akinsola Akinlabi, “The partnership focuses on enhancing bilateral collaboration on migration management and reviewing ongoing capacity-building efforts.”
Bartelink, Chargé d’Affaires of the Netherlands Embassy in Nigeria, underlined the Netherlands’ commitment to helping Nigeria’s continuing border security and migration reforms.
Also speaking, Rob Bokhoven, head of international affairs, repatriation, and deportation services at the Dutch Ministry of Justice and Security, emphasised the country’s strong bilateral relations and announced plans to share a mobile border software solution with the NIS.
Receiving the equipment, Nandap said the delivery of the gadgets would boost West African country’s border security, significantly improve the service’s document verification border management capabilities and support the implementation of Nigeria’s National Migration Policy.
“The engagement will further reinforce the strategic partnership between Nigeria and the Netherlands advancing shared goals in migration governance, border security and international cooperation,” she added.
Peter Enogb, principal country economist, African Development Bank (AfDB), says the rise in global uncertainty, emanating from increases in global trade tariffs, has slowed Nigeria’s projected growth to 3.2% in 2025.
“Without this level of heightened uncertainty, our projections would probably have been somewhat higher. We’ve reduced our projections for Nigeria. We initially were projecting 3.5% – 3.6% growth in 2025.
“But given the current situation, our models are showing that we’re taking a more cautious approach. So that’s why we produced this and, of course, the main driver is uncertainty in the global economy,” Enogb said.
He said this at the launch of the 2025 Nigeria Country Focus Report (CFR) on Thursday.
AFDB projected that real GDP growth would hit 3.1% in 2026. Following the 2024 consumer price index (CPI) rebasing, with lower weights for food items, the inflation rate is expected to reduce over the medium term to 24.7% in 2025 and 17.3% in 2026.
As imports start to rise over the medium term, the current account is projected to decline to 3.9% of GDP in 2026.
The National Bureau of Statistics (NBS) reported that Nigeria’s headline inflation slowed for the second consecutive month to 22.97% in May. This is down from 24.48% at the start of the year
This is contrary to the World Bank projection that Nigeria’s economy would record steady growth of 3.6% despite the shift in the global trade dynamics.
Joseph Ogebe, head of research and development at Nigerian Economic Summit Group (NESG), also said that global uncertainty had been very high in recent times, resulting from the Trump 2.0 effect.
“And also with the recent war between Israel and the international community, we’ve seen what’s happening to oil prices. Even with the call-off of the war, we’ve seen the effect on oil prices too, which has implications on the fiscal side. So it has implications for the general economy,” he said.
The head of research at NESG said that rather than focusing on just growth, what should be looked at is a strategy called growth with depth.
“Growth with depth means that your growth must be diversified, export-led, productive, and technologically driven,” he said.
Ogebe said that if the Government works towards adopting a strategy of growth with depth, there is a tendency for the government to move towards its goal of achieving a $1 trillion economy by 2030.
The report revealed that the country’s recent policy moves, including fuel subsidy removal, exchange rate unification, and tax reforms, reflect a commitment to long-term transformation.
However, it also pointed out that at about 13%, Nigeria’s tax-to-GDP ratio is among the lowest in West Africa, noting that fiscal reforms are urgent.
OAU Taps Aderounmu, Tech Advocate as DVC Academics
FG Halts FRC’s Turnover-Based Levy, Introduces N25m Cap
GTBank to Close Branches Early Today for Half-Year Audit
Half of Cybercrime Victims Paid Ransom in 2025- Sophos
NCS Advocates Digital Literacy to Enhanced Cyber Security
General News3 days agoNigeria’s BNPL Market is Projected to Value @ $2.6B by 2030
Telecom3 days agoFree WiFi Meets Mega Entertainment at the Grand Opening of Solution Fun City
E-Financial3 days agoNIA Puts Industry Written Premium @ N1.5trn in 2024
Telecom3 days agoInstagram Safety Tools Every Parent Should Know About
Telecom3 days agoV-Malaysia 2025: QNET Strengthens Global Network with Landmark 5-Day Event
E-Financial3 days agoUN and Sterling One Foundation Lead Coalition Ahead of ASIS 2025
News3 days agoINTERPOL Report Shows Cybercrime is West, East African Most Dominant Security Concern
E-Financial12 hours agoShareholders Oppose Transfer of Unclaimed Dividend to CBN