Wall Street rose on good earnings data

Risk appetite was noted in all sectors of the market on yesterday trading session. Retail sector were the biggest contributors to the gains, while the Nike inc. rose 12% after the release of the report for the second quarter and FedEx, which rose 3.4% on announced plans to cut costs by $ 1 billion next year. In general, markets closed with strong growth, showing the best performance since the beginning of December. Dow Jones added 1.6%, to 33,376.48, the S&P 500 traded up 1.49%, to 3,878.44 level, while the Nasdaq Composite rose 1.54%, to 10,709.37.

Also, U.S. consumer confidence rose to an eight-month high in December as inflation retreated and the labour market remained strong while 12-month inflation expectations fell to 6.7%, the lowest since September 2021.

Ukrainian President Zelenskiy told US Congress on Wednesday evening, that US support has been crucial for Ukraine and pressed the US for more tanks, planes and money to repel Russia’s invasion. He called for more sanctions and demanded that Russians responsible for the war be brought to justice. Russia stock market edged higher today snapping a three-day drop, but later pared gains as oil prices stabilized. IMOEX was up 0.77% at 2,132 and RTSI was down 1.01% to 931. Metals producer Norilsk Nickel, as well as energy companies Rosneft and Surguneftegas were the biggest contributors to the gains. Internet Company Yandex, gas producer Gazprom and retailer Magnit declined. Russian rouble declined for the 7th day against US Dollar, Euro and Yuan, heading for its lowest levels since late April. USDRUB was up 1.2% at 72.19 and EURRUB was up 1.24% at 76.84. The main reasons behind rouble weakness were declines in the trade surplus and short-term speculations, some analysts suggested. Russian bond yields were mostly flat this Thursday morning with 10-year benchmark rouble bond yields at 10.36%. In other news, Bank of Russia’s Board of Directors agreed to sell 100% of Otkritie Financial Corporation bank to VTB for 340 billion roubles.

European markets continue higher at the open. Markets were swept in the overall market bullishness on Wednesday with the Stoxx 600 closing 1.71% higher. 10Y bunds whipsawed in a 5bps range before closing just a basis point higher at 2.314% while 10Y BPTs similarly whipsawed albeit in a wider 10bps range before closing 4bps lower at 4.413%. On the data front we have Italian industrial sales for October as well as November PPI.

SSA continues firm at the open as the “Christmas rally” as sentiment remains positive heading into year end. Bonds traded firmer on Wednesday as technical drove flows with GHANA (+3.375) leading gains and long end being the most bid to narrow the price range to 6pts (ex 23s, 30s). Oilers outperformed as Brent gained 2.76% – ANGOL and NGERIA closed .875pts up each.

The NTB secondary market closed on a positive note as average yields dropped by 250bps across the curve. Average yields across the short, medium & long ends dropped by 135bps, 265bps & 350bps respectively. The Nov 9, 2023 bill witnessed considerable buying interest. In the OMO secondary market, average yields dropped by 375bps across the curve. Average yields across the short & medium tiers dropped by 380bps & 365bps respectively. Mar 7, 2023 witnessed significant buying interest.

The FGN bonds secondary market closed on a positive note with average yields across the curve, closing lower by 5bps. Average yields on the short remained unchanged while the  medium & long ends dropped by 10bps & 5bps respectively. The Jan 2026 bond was the best performer.