Connect with us

Business

Upbeat data help European shares hold gains

Published

on

LONDON – Upbeat economic data helped European shares break a three-day run of losses on Wednesday, offsetting some unconvincing company earnings and jitters about emerging markets.

Overnight trading in Asia had been mixed despite a rebound on Wall Street, but January purchasing manager index (PMI) data helped settle European nerves before the European Central Bank’s monthly meeting on Thursday.

The pan-regional FTSEurofirst 300 .FTEU3 was up 0.4 percent after the data. Outperforming Italy, Spain and Portugal bolstered gains of 0.4, 0.3 and 0.2 percent in London .FTSE, Paris .FCHI and Frankfurt .GDAXI.

Markit’s euro zone Composite PMI, which gauges business activity across thousands of companies and is seen as a good guide to economic health, climbed to 52.9 in January from 52.1 the previous month. That was the highest final reading since June 2011.

It showed the recovery of the 18-member bloc is broad-based, Markit said, with Germany leading an upswing in peripheral members amid signs of a stabilization in number two economy France.

“The euro zone PMI was down slightly on the earlier flash reading but nevertheless signals a very encouraging start to the year,” said Chris Williamson, Markit’s chief economist.

It was welcome news following data hiccups from the world’s biggest economies, the U.S. and China, earlier this week.

Dealers cautioned, however, that the mood remained brittle and it would only take a poor U.S. payrolls report on Friday to set the bears running again. The ADP reading on private hiring is due later on Wednesday, and investors are likely to react badly to any disappointment.

In Asia, the strain clearly took a toll. Demand for safety in the yen and top-rated bonds grew on a roller-coaster day for Toyko’s Nikkei .N225 and more losses for Chinese stocks.

The Nikkei eventually closed up 1.2 percent, but swings throughout the day meant it never got close to testing resistance at the 200-day moving average. The index has shed 14 percent this year following last year’s 50 percent boom.

YEN EFFECT

The faltering performance was all the more disappointing as some major corporate names reported upbeat earnings, helped by the yen’s recent plunge. Panasonic Corp (6752.T) jumped 17 percent after its quarterly earnings more than tripled. Toyota Motor Corp (7203.T) rose 5 percent after it predicted record annual profits.

On Wall Street, the Dow .DJI had ended Tuesday up 0.47 percent and the S&P 500 .SPX added 0.76 percent. But stock futures were trading lower on Wednesday, with the S&P e-mini contract off 0.3 percent.

The underwhelming bounce in the Nikkei led investors to again bid up the safe-haven yen, with the dollar dipping to 101.36 yen from an early top of 101.77.

“The key will be the U.S. data, and any missing of forecasts will challenge the global recovery story and push dollar/yen towards the 100.60 support,” said Jeremy Stretch, the head of currency strategy at CIBC World Markets.

The euro eased a touch to $1.3510 and German Bund yields returned to six-month lows, still driven by speculation that the threat of deflation might nudge the European Central Bank into easing policy on Thursday.

The major mover in currencies was the Australian dollar, which surged after the country’s central bank on Tuesday shut the door on further rate cuts.

The Aussie was enjoying the view at $0.8910 after climbing a steep 2 percent overnight. It also rallied against the euro and yen as speculators abandoned short positions in what had been a very crowded trade.

TREASURY HUNT

The reluctance to take risks led to demand for U.S. Treasuries, with the 10-year yield ticking down to 2.61 percent, not far from the recent three-month low at 2.57 percent.

Gold got a slight boost but remained sluggish at $1,255.60 an ounce.

In commodities, prices for wheat were boosted by dry weather and deteriorating crop conditions in the United States. Soymeal and corn were in high demand.

Broad gains in grains and natural gas lifted the Thomson Reuters/Core Commodity Index .TRJCRB 1 percent, the biggest one-day gain in nearly a month.

U.S. oil futures rose on bets on a reduced stockpile at a key delivery point caused by the start-up of a major pipeline. The March NYMEX contract added 64 cents to $97.84 a barrel. Brent crude rose 42 cents to $106.20.

– REUTERS

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

How Oil Cabals Crippled Govt Refineries, Now Scheming Against Dangote Refinery – Pastor Adeboye

Published

on

 

The General Overseer of the Redeemed Christian Church of God (RCCG), Pastor Enoch Adeboye, has urged Nigerians to pray for divine intervention in the face of efforts by unscrupulous oil marketers to thwart the operations of the Dangote Petroleum Refinery, following the previous sabotage of Nigeria’s four state-owned refineries.

The respected clergyman made the call for nationwide prayers during the November 2024 Abuja Special Holy Ghost Service themed ‘Total Restoration’, in Nigeria’s capital city.

Though Pastor Adeboye did not explicitly name the Dangote Petroleum Refinery, many read his remarks to have echoed ongoing attempts by oil marketers to prevent the refinery from functioning as it was designed to.

ALSO READ: FIRS Names Dangote Group Most Tax Complaint Business

With the Ibeju-Lekki, Lagos based Dangote Refinery about the only facility currently refining petrol in Nigeria, many read Pastor Adeboye’s comments to reflect the dispute between the refinery and oil marketers, who seek to continue importing refined products.

Pastor Adeboye reminded the congregation that it was God who raised Aliko Dangote to establish a refinery after years of failed attempts to revive Nigeria’s four public refineries, which had consumed billions of Naira with little result.

He questioned the persistence of fuel imports despite Nigeria’s status as a major crude oil producer.

“Are we under a curse?” he asked. “We have four refineries, we poured all kinds of money into them, none of them is working. But God raised someone to build a refinery that works. He is not my relative, he is not from my village. He is not even a Christian, but he is a Nigerian who says, ‘Why should my people suffer when I have the means to build a refinery that can work?’ Now he is refining petrol, and some people want to stop him from selling it, so they can keep importing.”

Pastor Adeboye also pointed out the damage caused by the fuel subsidy, describing it as a significant drain on Nigeria’s resources, contributing to the country’s mounting debts and corruption.

He stressed that when President Bola Ahmed Tinubu announced the end of the subsidy in 2023, Nigerians largely welcomed the decision, but oil marketers, who benefitted from the subsidy regime, were furious.

The marketers, according to the renowned pastor, appear to have gone into alliances with some International Oil Companies (IOCs) and other powerful interests to obstruct the Dangote Petroleum Refinery. This includes restricting access to crude oil, forcing Dangote to import crude from countries like the United States, among others.

He called for prayer for the total restoration of the country, noting that the Nigerian people are suffering the consequences, as the prices of essential goods have soared, pushing many items beyond the reach of ordinary citizens. “The masses are the ones suffering because these marketers, who are bent on keeping imports alive, already have more money than they can ever spend,” he said.

Despite the Dangote Petroleum Refinery’s capacity to meet Nigeria’s entire demand for petroleum products – and even to export surplus fuel – oil marketers continue to pressurise the government to allow ongoing petrol imports. This has placed additional strain on the Naira, which has continued to depreciate.

Recall that the Crude Oil Refineries Owners Association of Nigeria (CORAN) had urged the government to protect local refineries from unfair competition posed by importers and international petroleum traders, in line with provisions in the Petroleum Industry Act (PIA).

Continue Reading

Business

Petrol Prices To Drop As IPMAN, Dangote Strike Supply Deal

Published

on

In a major development for Nigeria’s oil market, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has secured an agreement with Dangote Petroleum Refinery to begin lifting petroleum products, directly, for distribution in the domestic market.

This agreement aims to stabilize and potentially lower pump prices for consumers by ensuring a consistent supply of refined products like Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Dual-Purpose Kerosene (DPK) directly from the refinery.

Announcing the deal, IPMAN’s National President, Abubakar Garima, highlighted the economic benefits of this collaboration. “The new arrangement with Dangote Refinery will ensure a steady and ceaseless supply of PMS products all over Nigeria at an affordable rate,” Garima stated at a press briefing in Abuja.

This move is expected to reduce the influence of middlemen, cut costs, and enhance price stability in the oil sector, a vital aspect of Nigeria’s economy.

READ MORE: U.S. Offers $25,000 Reward For Nigerian Fugitive Wanted For Alleged Child Murder

The agreement follows recent challenges faced by IPMAN, which, despite paying a substantial sum of N40 billion to the Nigerian National Petroleum Company Limited (NNPCL), struggled to source refined products. In response, Dangote officials had previously remarked that though the refinery held ample stock, marketers had yet to make adequate payments. However, Garima’s remarks reflect optimism that this direct deal will foster smoother operations.

Energy expert Kelvin Emmanuel has suggested the deal could significantly reduce overheads for IPMAN, potentially eliminating certain financing and margin costs previously incurred through NNPCL, bringing down the overall cost per metric tonne of petroleum.

Additionally, IPMAN’s support for the Federal Government’s Compressed Natural Gas (CNG) initiative signals a shift towards diversifying energy sources. The association has called on its members to prepare for CNG infrastructure at their stations, anticipating that CNG will play a vital role in rejuvenating Nigeria’s energy landscape.

With this new arrangement, IPMAN and Dangote aim not only to enhance petroleum accessibility but also to contribute to economic growth and job creation. Garima also emphasized the importance of IPMAN members backing this deal, aligning with the government’s broader goals for energy stability and affordability, especially as Nigeria seeks to lessen its reliance on imports.

Continue Reading

Business

Kyari Outlines Vision For Nigeria’s Energy Future

Published

on

 

Group CEO of the NNPC Ltd., Mele Kyari has reiterated the company’s commitment to resolving Nigeria’s energy trilemma, by ensuring energy security, sustainable growth and energy affordability.

This was contained in statement by the Chief Corporate Communications Officer, NNPC Ltd, Olufemi Soneye, issued on Monday evening on its verified handle on micro-blogging site, X.

According to the statement, Kyari disclosed this at the opening ceremony of the 42nd Nigeria Association of Petroleum Explorationists (NAPE) Annual International Conference and Exhibition themed: “Resolving the Nigeria Energy Trilemma: Energy Security, Sustainable Growth and Affordability” in Lagos, on Monday.

ALSO READ: Nigeria, Africa Urged To Leverage Trump’s Victory For Economic Boost

The GCEO, who was the Special Guest of Honour at the occasion, also said the company has perfected plans to deliver 12 Compressed Natural Gas (CNG) Mother Stations and Mini LNG Plants soon, as part of efforts to boost the existing 1.6 billion standard cubic feet (bscf) of gas supply for domestic market.

“The energy trilemma is a profound responsibility we shoulder as stewards of Nigeria’s energy future. NNPC Ltd. is working tirelessly to improve our supply chain, develop new refining capacities and expand our retail network,” Kyari stated.

According to him, NNPC Ltd. is set to collaborate with private refineries to ensure affordable and sustainable petroleum products supply; Naira-for-crude transactions in order to stabilise the local currency and regulate forex markets.

This, he added, will bring about expansion of gas infrastructure such as the Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline and the Obiafu-Obrikom-Oben (OB3) Gas Pipelines projects and the development of cleaner energy options, such as Liquefied Natural Gas (LNG) and Compressed Natural Gas (CNG).

“Currently, NNPC Ltd. supplies over 1.6 bscf of gas per day to the domestic market through infrastructure we either own outrightly or operate with partners. This distribution network is entirely managed on NNPC Ltd.’s balance sheet,” Kyari added.

Explaining that the Company is expanding its efforts to enhance domestic energy access, the NNPC Ltd. helmsman said the next 3-6 months will see significant project launches, including CNG mother stations, mini-LNG plants, and additional CNG daughter stations.

Kyari, who commended President Tinubu’s efforts to relieve forex pressures by reducing fuel imports and strengthening Nigeria’s local refining capacity, emphasised the need for collaboration, innovation, and technology in achieving Nigeria’s energy goals.

“Resolving the energy trilemma requires bold ideas, shared knowledge, and collective determination. Together, let us build a Nigeria where energy is secure, sustainable, and affordable for all.”

On NNPC Ltd.’s mandate to guarantee energy security as stipulated by the Petroleum Industry Act, 2021, Kyari said the Company has fostered partnerships and investments aimed at enhancing local production and generating revenue for economic diversification.

Reacting to claims that NNPC Ltd. is sabotaging the efforts of domestic refineries, Kyari said the NNPC Ltd. is part-owners of the Dangote Refinery, stressed further that such an investment is a strategic move aimed at strengthening domestic fuel supply.

 

 

Continue Reading

Copyright © 2022. Biztellers, powered by Alphaxristi.