The U.S. stocks dipped this week as markets remained wary of the more infectious covid-strain and its impact on businesses, and the widely-anticipated meeting of central bank officials next week. Major market indexes maintained their loss position for the second consecutive week while the U.S. 10-year Treasury note reached 1.40% this week.

The Federal Reserve (Fed) Chairman, Jerome Powell hinted that the pullback of easing policies could begin this year, but investors are waiting for more specifics, particularly after mixed economic data released since the last Fed meeting.

in the week ahead, it’s all about the Federal Reserve, as the central bank holds its much expected September meeting. at this meeting, The central bank is expected to firm up on its bond tapering position and its interest rate outlook, which is expected to influence investors’ decisions.

On the domestic front, The Nigerian Equities market snapped its two-week losing streak, reversing the tides to close in wins (+0.06% this week). The market’s return for the year moderated to -3.29% (from -3.35% the previous week). On a sectoral basis, all sectors closed down, with the oil and gas sector leading the pack (-3.35% week on week).

On the macroeconomic scene, the recently released inflation report revealed a further slowdown in inflation, citing the 0.36% moderation to 17.01% for the month of August, from 17.37% in July 2021. The moderation was largely due to the decline in food and core inflation indices. At the scheduled monetary policy committee meeting, chaired by the central bank governor, it was agreed to maintain the status quo on key parameters.

It was largely a buyer’s market at the fixed income secondary market this week, as investors cherry-pick instruments at attractive prices. As a result, average treasury bills and bonds yield declined to 5.13% and 10.73% (from 5.01% and 10.63% the previous week) respectively.