Global stocks, including Nigeria’s, have maintained bullish runs, gaining on the average 11 percent so far in the year. This follows currency recoveries in major economies of the world.
The dollar indeed recovered more ground on Friday as upbeat U.S. economic data allayed concerns over growth ahead of payrolls figures due out later in the day.
The Nigerian naira equally increased 19.6200 or 6.45% to 324.0000 on Friday June 2 from 304.3800 in the previous trading session. Historically, the Nigerian naira reached an all time high of 347.25 in August of 2016.
The dollar, coming off its worst fortnight in a year against the euro and the basket of currencies used to measure its broader strength, DXY, on concern about the Trump administration’s ability to deliver a substantial boost to growth, clawed back some of those losses.
The dollar index was little changed although the greenback was up 0.1 percent against the Japanese yen (JPY).
“Good numbers yesterday and the record highs in equities if anything are dollar positive. The data hasn’t done a great deal for the dollar recently, but we’ll certainly be looking at the wage numbers today – that is crucial for inflation and the rate outlook,” said Niels Christiansen, a strategist with Sweden’s Nordea Bank, according reports by Reuters.
Data showing a healthy uptick in private sector hiring and factory activity during May bolstered expectations that the U.S. economy was picking up speed and lifted stocks on Wall Street after two days of losses.
Data showing a healthy uptick in private sector hiring and factory activity during May bolstered expectations that the U.S. economy was picking up speed and lifted stocks on Wall Street after two days of losses. 
The gains filtered through to global stocks, lifting the MSCI All-Country World index by 0.3 percent to a record high.
Stocks in Europe joined the party with euro zone blue-chips up 0.9 percent and UK’s FTSE 100 up 0.4 percent and hovering near its highest-ever levels.
In Nigeria, stocks jumped to 11-month high as bulls maintain dominance with
All-share index rising by 2.8%
Market capitalization increased N282.0bn to close at N10.5tn. driven by gains in DANGCEM (+5.0%), NIGERIAN BREWERIES (+4.9%), FBNH (+10.0%) and ZENITH (+2.9%) kept the bears out of the market.
“Despite the sustained market rally and the benchmark index’s 14-Day RSI closing at 85.7 points (indicating that market is in the overbought region) trading multiples show that Nigerian equities remain cheaper and attractive when compared to SSA peers,” say analysts at Afrinvest.
They believe the improvements made in FX management will continue to buoy foreign participation in the market.
In commodities, oil prices resumed their slide with key futures contracts down more than 2 percent amid worries that U.S. President Donald Trump’s decision to abandon a global climate pact could spark more crude drilling in the United States, stoking a persistent glut in global supply.
Global benchmark Brent crude futures LCOc1 fell to $49.63 a barrel, while U.S. West Texas Intermediate crude CLc1 by more than a dollar to $47.36 per barrel.
By Business a.m. live staff
