THE NAIRA DROPS INSTANTLY AFTER BEING DEVALUED……………

CBN pic

By: Economic & Finance Report

The Naira devalued over 30% instantly on Monday, June 20, 2016.  It dropped 260 to 1 USD. The Central Bank of Nigeria last week insisted that it would remove restrictions on the Naira and allow it to “float freely” against the dollar.  The move was applauded by traders, analyst, the IMF (International Monetary Fund), whom all have indicated for over a year to allow the Naira to drop because of depleting oil prices.

On Monday, the dollar went skyrocketing against the Naira, some indicated they expected a drop, but not a 30% drop perhaps.  Many analysts including credit rating agency Moody’s; believe devaluing the Naira is a step forward in helping to stabilize Nigeria’s economy; which took a major hit the past few years because of declining oil prices. -SB

ASIAN SHARES RISE HIGHER FOR THE 3RD CONSECUTIVE MONTH…..

asian shares market

By: Economic & Finance Report

 Asian shares heeded higher for the third consecutive month as stocks moved higher for the past couple of days. Bulls seem to be reigning in as prices and stock indexes continue to go to a higher direction. Oil seems to be gaining ground higher as well, the uptrend on stocks and prices is viewed by how well oil can maintain its run upwards.

The Nikkei  posted higher on Wed Feb. 4, 2015, up 1.8% because of banking sector performing unusually well for the day and also very strong company earning reports from Mitsubishi .

Australia’s index also outperformed  climbing 1.2% because of the interest cut instituted by the Federal Reserve Bank of Australia.

-SB

LATIN AMERICA ECONOMIC GROWTH IN Q3 PICKS UP….OUTLOOK STILL BLEEK

 

latin america economy

By: Economic & Finance Report

In the 3rd Quarter Latin America’s economic growth picked up some steam. The GDP indicated that  Latin America expanded 0.6% in the Q3. Economies such Bolivia,  Mexico, and Peru outperformed, while countries such as Venezuela, Argentina and Brazil were intensely lagging.

The decline of oil prices hurt Argentina and Venezuela because of their dependency of the rich commodity. The fall of oil prices has a drastic impact in the region because the commodity is heavily relied on as revenue for  importing and exporting.

In 2015 the currency in the Latin America has taken a slide as well, which many countries saw the  currency rates slide against the dollar. As the oil prices fell, so did currency for countries in the region as well. 

Latin America’s economic outlook though seems to be bleek though as noted by economists reducing the region’s long term growth rate to only 0.4%. The energy sector has also been affected tremendously because of the devaluation of the oil markets.

-SB

Energy Decline Having An Lasting Effect On European Stocks

By: Economic & Finance Report

Financial market losses on Friday, sent currencies in Russia and Norway to fresh multiyear lows. Defining concrete losses to European equity indexes.

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The Stoxx Europe 600 index closed the session down 2.5 per cent, with the European subindex of oil and gas companies falling 3.6 per cent.

London’s FTSE 100, which has a very high exposure to the oil and gas sector, declined 2.5 per cent and notched up its biggest weekly loss in around two years. Howevr the DAX in Frankfurt dropping 2.7 per cent and the CAC-40 in Paris ending down 2.8 per cent. In the U.S., the S&P 500 dropped more than 1 per cent in late European trade.

The European central bank indicated a need to sell off the euro against the dollar and British pound…

 

Oil plunges 3 percent to new five-year lows after bearish IEA outlook

Oil plunges 3 percent to new five-year lows after bearish IEA outlook

Reuters

A customer uses a petrol nozzle to fill up his tank in a gas station at a supermarket in Truchtersheim near Strasbourg
A customer uses a petrol nozzle to fill up his tank in a gas station at a supermarket in Truchtersheim near Strasbourg August 26, 2012. REUTERS/Vincent Kessler
NEW YORK (Reuters) – Crude oil markets fell 3 percent or more to plumb new five-year lows on Friday after the world’s energy watchdog forecast even lower prices on weaker demand and larger supplies next year.

Benchmark Brent oil settled at below $62 a barrel and U.S. crude slumped to under $58 to extend Thursday’s landmark fall below $60.

Surging crude inventories in the United States and top oil exporter Saudi Arabia’s reiteration that it will not cut production had roiled prices over the last two days despite data pointing to strong U.S. economic recovery.

On Friday, the Paris-based International Energy Agency which coordinates the energy policies of industrialised countries, cut its outlook for demand growth in 2015, triggering another collapse.

The IEA slashed its outlook for global oil demand growth for 2015 by 230,000 barrels per day to 900,000 bpd on expectations of lower fuel consumption in Russia and other oil-exporting countries.

It predicted that oil-producing nations outside of the Organization of the Petroleum Exporting Countries will add to global supplies. It also expected prices to fall further.

“That’s just more bad news for the oil markets,” said Andrew Lipow, president of Houston-based Lipow Oil Associates.

Brent settled down $1.83, or nearly 3 percent, at $61.85 per barrel. It fell to $61.35 during the session, the lowest since July 2009.

U.S. crude finished down $2.14, or 3.6 percent, at $57.81. It fell earlier to $57.34, its lowest since May 2009.

On the week, Brent lost more than $7, or about 11 percent. U.S. crude tumbled over $8, or 12 percent.

Both markets have lost about 46 percent of their value since their June highs, when Brent stood at above $115 and U.S. crude at around $107.

The IEA outlook had a greater impact on Friday’s market than data from U.S. oil services firm Baker Hughes showing the number of rigs drilling for oil in the United States were down by 29 this week, the biggest weekly drop in two years.

Voluminous crude from U.S. shale projects has been blamed for much of the global oil glut now, and energy traders have been watching rig data to see if prices that have almost halved since June will prompt a cutback in drilling.

Regulators in North Dakota, one of the largest shale oil producing states in the United States, also said on Friday the state’s crude production held steady in October despite strict new rules that aim to prevent wasteful burning of natural gas produced alongside oil.

(Additional reporting by Simon Falush in London and Adam Rose in Beijing; Editing by Marguerita Choy and Gunna Dickson)