Expert x -rays dynamics in the global financial economy

 Expert x- rays dynamics  in the global financial economy 

A Senior Financial Market Analyst with FXTM ,  leading provider of financial education in forex, stocks, indices and commodities,  Mr Lukman Otunuga has given an outlook of the global financial economy for the week, projecting that headwinds lie in  the horizon occasioned by the four per cent gain in the price of Brent crude oil, currently  hovering in the neighborhood $80 per barrel.

The current price of Brent crude, which has increased since  the start of 2024, Otunuga noted, has reflected a key level of interest in the global economic arena with margins of seven dollars as prices oscillate between $82 and $82.80 respectively.

He cited the figures as part of the monthly outlook from the International Energy Agency.

FXTM, which is dedicated to empowering individuals with the knowledge and tools they need to succeed in the financial markets, Otunuga said has observed some semblance of stability returning to the global markets after the United States recession fears created shockwaves last week.

Otunuga said: " Still, concerns over the health of the world’s largest economy linger with investors on high alert ahead of another busy week. With the US elections just months away, this negative development adds another layer of uncertainty. Much focus will be on the US CPI print, retail sales, and consumer confidence which are likely to shape expectations around how aggressively the Fed cuts rates.

"Regarding the fourth largest economy in Africa, the main theme will be the latest CPI print. One of the key themes in Nigeria in 2024 has been runaway inflation which jumped to 34.2 per cent  in June – it is the highest level since 1996. However, the incoming CPI print is expected to show prices slowing in July, cooling to 33.2 per cent  compared to 34.2 per cent  in the previous month."

Narrowing it home, Otunuga said given the Central Bank of Nigeria (CBN’s) aggressive approach towards raising rates, signs of cooling price pressures will be a breath of fresh air for consumers.

He said: "  It is worth noting that the Central Bank of Nigeria has raised rates by a whooping 800 basis points in 2024. Looking beyond inflation, the next key event will be GDP published later this month. After expanding three per cent  in Quarter One, it will be interesting to see whether growth can be maintained in Quarter Two . In the Foreign EXCHANGE  space, the Naira continues to gain against the dollar on the official exchange with the spot rate at N1589 as of Monday.

"Regarding oil, it has extended its first weekly gain since early July thanks to geopolitical tensions in the Middle East. Rising oil prices may have a positive knock-on effect for the economy, especially when factoring how a major chunk of revenues is acquired from oil sales. 

"However, this could be cancelled out by the rising cost of fuel imports which is costing Nigeria $600 million per month.
"Still, this is set to be another big week for the global commodity due to the monthly outlook from the International Energy Agency. Talking technicals, Brent has gained over four per cent  since the start of 2024 with prices trading above $80 as of writing. Key levels of interest can be found at $7, $82 and $82.80."
Meanwhile, the next FXTM's  Financial Markets Trading Seminar, will hold  August 17, 2024  in Lagos.

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