2023-12-29 13:51
ABUJA, Dec 29 (Reuters) - Nigeria's foreign exchange reserves dipped to a six-year low of $32.87 billion at the end of December, data showed on Friday, as the central bank sold dollars to try to prop up the ailing naira currency. A backlog of unsettled forwards, undelivered promises of dollar inflows and a two-decade peak in inflation have translated into a tumultuous year for the naira, which has lost over 50% of its value to become the third worst-performing global currency in 2023, said Kyle Chapman, FX markets analyst at London-based Ballinger & Co. This prompted the Central Bank of Nigeria (CBN) to run down its foreign exchange reserves, which peaked at $47.63 billion in June 2018, to defend the naira. The dollar reserve of Africa's biggest economy in December dwindled to a level last seen in September 2017, when it stood at $32.16 billion. "The naira's downwards momentum is likely to continue through much of 2024, and its ultimate trajectory will depend on whether the CBN's rhetoric transforms into concrete policy moves that drive up the flow of U.S dollars into Nigeria and shore up trust in the official market," Chapman said. The naira last week touched a low of 1,248 naira on official market and sold for 845 naira on Friday. It was quoted at 1,210 naira on the parallel market while on the forwards market the naira sold for 1,037.50 to dollar for one-month settlement . CBN Governor Olayemi Cardoso has said he would allow market forces to determine exchange rates while setting clear, transparent and harmonised rules governing market operations. "If the CBN's promised measures materialise and (President Bola) Tinubu's government enacts structural changes to increase oil production or to drive foreign investment, there is plenty of opportunity for the naira to lift from its record lows," Chapman said. "But a quick fix is unlikely, and further depreciation will come to counteract supply and demand imbalances." https://www.reuters.com/markets/currencies/nigerias-fx-reserves-dip-six-year-low-naira-falls-2023-12-29/
2023-12-29 13:39
JOHANNESBURG, Dec 29 (Reuters) - South Africa's rand strengthened in thin trade on the last day of trading for the year on Friday, helped by positive domestic economic data. At 1320 GMT, the rand traded at 18.40 against the US dollar , about 0.8% stronger than its previous close. But the rand is down about 7.5% against the US dollar this year as severe power cuts, logistical constraints at South African ports, strained government finances and global risk-aversion took their toll. Revenue service data on Friday showed South Africa recorded a trade surplus of 21.02 billion rand ($1.14 billion) in November compared with a revised deficit of 12.88 billion rand in October. The country's budget deficit narrowed to 17.81 billion rand in November compared with the same month a year earlier, Treasury figures showed. On the stock market, the Top-40 (.JTOPI) index closed up 0.6%, while the broader all-share (.JALSH) ended around 0.5% higher. South Africa's benchmark 2030 government bond was weaker, with the yield up 4.5 basis points to 9.770%. ($1 = 18.4038 rand) https://www.reuters.com/markets/currencies/south-african-rand-firmer-light-trade-down-75-2023-2023-12-29/
2023-12-29 13:29
Dec 29 (Reuters) - Faraday Future Intelligent Electric (FFIE.O) got a notice from the Nasdaq exchange on Thursday over its failure to comply with listing rules that require a minimum closing share price of $1, the electric-vehicle startup disclosed in a filing. The firm, whose shares closed at 26 cents on Thursday, has until June 25 to regain compliance by lifting its stock price over the required level for at least 10 consecutive days. Faraday in August announced a reverse stock split in an attempt to regain listing compliance, but since the start of September, its shares have declined around 96% as the company grapples with a cash crunch and supply-chain issues. In an attempt to boost its current cash balance of $8.6 million, it announced plans in late September to raise up to $90 million through a stock offering. The company was also involved in a governance dispute with one of its largest shareholders, FF Top Holding, which resulted in a board reshuffle. https://www.reuters.com/business/autos-transportation/ev-startup-faraday-futures-sinking-share-price-prompts-nasdaq-notice-2023-12-29/
2023-12-29 13:28
Dec 29 (Reuters) - Fisker (FSR.N) said on Friday its electric vehicle deliveries jumped more than four-fold during the final quarter, helping it hand over about 4,700 vehicles for the year. The rise in quarterly sales volume was primarily driven by strong demand for the Fisker Ocean SUV, priced at about $69,000, the company said. Fisker started making its first deliveries to U.S. customers in June. The company will announce a plan in January to boost sales and deliveries to align production capacity with strong demand for the Ocean SUV, Fisker said. Shares of the California-based EV company were up more than 10% in premarket trading. They have lost about 79% so far this year. Smaller EV firms are facing dwindling cash reserves, pressured by high costs related to production ramp-ups and price cuts to boost demand. Fisker, which has a deal with Magna International's (MG.TO) Austrian unit to manufacture its cars, made 10,142 vehicles in 2023. The company, however, slashed its annual production forecast twice in the past two months as it slowed down production to meet working capital needs. https://www.reuters.com/business/autos-transportation/fisker-delivers-4700-electric-cars-2023-shares-jump-2023-12-29/
2023-12-29 13:24
Dec 29 (Reuters) - Global equity funds attracted substantial inflows in the week through Dec. 27 as data showed U.S. inflation cooled further in November, cementing expectations that the Federal Reserve would cut interest rates in March next year. The MSCI All-World index (.MIWD00000PUS) surged to 3184.32 on Thursday, its highest since January 13, 2022 amid market optimism over the prospects of rate cuts. According to LSEG data, global equity funds received a net $16.01 billion during the week, logging their most significant weekly net purchase since March 22. Investors poured about $14.57 billion into U.S. equity funds, the biggest amount since June 14. European and Asian funds however, faced outflows of roughly $1 billion and $182 million, respectively. Global bond funds, meanwhile, received $1.07 billion in inflows after two successive weeks of outflows. Investors purchased $2.62 billion worth of global corporate bond funds in contrast to disposals of about $3.9 billion in the prior week. High yield funds also secured inflows, worth about $679 million but government bond funds had outflows of $265 million. Meanwhile, global money market funds attracted $9.12 billion, their first weekly inflow in three weeks. Among the commodities segment, precious metal funds attracted about $111 million as inflows extended into a fourth successive week. Energy funds also attracted about $36 million in net buying. Data covering 29,066 emerging markets funds showed equity funds secured $1.94 billion worth of inflows, breaking a 19-week-long selling streak. EM bond funds however, had $1.33 billion worth of outflows. https://www.reuters.com/markets/global-markets-flows-graphic-2023-12-29/
2023-12-29 11:18
Oil prices set for first annual decline in three Upside risks to prices from geopolitics in 2024-poll For a table of crude price forecasts, click Dec 29 (Reuters) - International oil prices are likely to stay near $80 a barrel in 2024, a Reuters poll showed on Friday, as analysts predicted weak global growth would cap demand, while geopolitical tensions could provide support. The analysts questioned whether the Organization of the Petroleum Exporting Countries and allies (OPEC+) would be able to sustain supply cuts to support the market. The global benchmark Brent crude has averaged around $82.17 a barrel so far this year and was poised for an over 9% yearly decline as a strong U.S. dollar boosted by a high interest rate environment and subdued demand from top consumer China weighed. A survey of 34 economists and analysts forecast Brent crude would average $82.56 in 2024, down from November's $84.43 consensus. Just one contributor expected prices to average above the $90 mark next year. U.S. crude was seen averaging $78.84 next year, from $80.50 last month. "From the demand side we do not expect much impetus in the months to come," said Thomas Wybierek, analyst at NORD Landbk. "There is still a question mark behind the supply side. There are a lot of doubts (on whether) the OPEC+ alliance will be capable to reduce supply as decided recently." Last month, OPEC+ oil producers agreed to voluntary output cuts totalling about 2.2 million barrels per day for early next year led by Saudi Arabia rolling over its current voluntary cut to support the market. OPEC+ is cutting some 6 million bpd from its output and its market share has fallen to 27%. "While it is difficult to maintain cooperation with all the members of OPEC+ - at this time and price level - all members are supportive of higher oil prices," said John Paisie, president of Stratas Advisors. Analysts polled also said geopolitical risks would keep oil prices volatile in the coming months. "We think that there will be a greater concern about geopolitics in 2024 than in 2023 - and the associated risk premium will be substantially higher," Paisie added. Military clashes between Israel and Hamas sparked worries that a wider conflict could hit supply from the Middle East, the world's biggest oil-supplying region. The latest attacks on ships in the Red Sea prompted fears of shipping disruption. https://www.reuters.com/business/energy/slow-demand-set-keep-oil-price-near-80b-2024-2023-12-29/
