Global Equities Swing Influenced by Rates Signal, AI Optimism
Global equity markets were mixed during the holiday-shortened week, influenced by investors’ sentiment and central bankers’ policy signals ahead of 2026.
In the U.S., the S&P 500 and Dow Jones hit record highs, Anchoria Securities Limited said in a note, supported by strong economic data and optimism around artificial intelligence (AI), while the small-cap Russell 2000 underperformed.
U.S. economy grew at an annualized 4.3% in Q3, the fastest pace in two years, driven by consumer spending, higher exports, and a rebound in government expenditure.
However, durable goods orders fell 2.2% in October, and consumer confidence declined to 89.1 in December amid concerns over jobs and household income. U.S. Treasuries and investment-grade corporate bonds saw modest gains, with yields largely range-bound.
In Europe, the STOXX 600 rose 0.2% overall, though national indexes showed mixed results: Germany’s DAX +0.21%, France’s CAC 40 -0.59%, and the UK’s FTSE 100 -0.27%.
Germany’s central bank expects gradual economic recovery in 2026, but many firms remain cautious. In the UK, business surveys painted a mixed picture: the CBI indicated further economic weakness, while Lloyds Bank’s poll showed improving optimism.
Market participants expect potential Bank of England rate cuts in the coming months amidst slight economy growth. Recall the UK economy expanded by just 0.1% in Q3 2025, slowing from 0.3% in Q2, as weakness in the production sector (-0.3%), particularly manufacturing (-0.8%), weighed on growth.
In Asia, Japan’s markets rose, with the Nikkei 225 +2.51%, led by technology stocks, while the 10-year government bond yield edged higher. The BoJ signaled readiness for further policy rate hikes as inflation and wage targets near.
In China, the CSI 300 +1.95%, reflecting moderate gains despite slowing retail sales and fixed asset investment, with analysts expecting the 5% growth target to be met.
Elsewhere, Türkiye announced a 27% minimum wage increase for 2026, and India’s RBI injected INR 2.9 trillion to ease liquidity stress, supporting bond markets. Overall, markets were influenced by economic data, central bank actions, and ongoing regional risks.
The Nigerian Exchange All-Share index closed the three-day trading week on a positive note, extending its upward trend with a 0.97% week on week gain to close at 153,539.83pts.
Buying interest in tickers like FIRSTHOLDCO (+17.9%), BUAFOODS (+1.9%), BUACEMENT (+2.9%), TRANSCOH (+9.8%), and INTBREW (+20.8%), offsetting the decline seen in MTNN (-5.2%).
Sector-based, four of the six sectors under our purview closed positive, as seen in Banking (+2.93%), Consumer Goods (+3.34%), Insurance (+3.07%), Industrial Goods (+1.17%), and Pension (+1.02%). On the other hand, Insurance (-2.13%) closed in the red, while the Oil & Gas sector closed flat.
The market capitalisation increased by 0.98% week on week to ₦97.89 trillion, and the NGX-ASI year to date closed at 49.17%. Central Bank Funds FX Payments with $150m as Inflow Drops
