Last week, there was no shortage of movement across markets. Central bankers were making decisions, bond traders were pricing in risk, and Nigerian stocks were quietly extending one of their longest winning streaks in months.
Here are the major highlights that moved in the market last week.
Global Economy
US: The Fed Kept Interest Rates Steady
Jerome Powell chaired his last Federal Open Market Committee meeting last week. during that meeting a decision was reached to hold rates steady, in line with broad market expectations, while maintaining an easing bias in its policy statement.
However, the decision revealed notable internal divisions, with three members dissenting against the inclusion of easing language and one member dissenting in favor of an outright rate cut, marking the highest number of dissents during Jerome Powell’s tenure as Fed Chair.
Markets interpreted the pushback against the easing bias as a hawkish signal, suggesting growing discomfort within the Committee around premature policy loosening. When the Fed is this divided, volatility tends to follow. If you hold dollar-denominated assets or are watching the naira exchange rate, expect the unexpected in the coming months.
Although the April FOMC meeting marked Powell’s final meeting as Chair, he indicated during the post-meeting press conference that he intends to remain on the Board of Governors for an unspecified period, despite this being an uncommon move historically. While his term as a governor extends through January 2028, Powell cited concerns around political interference, particularly legal actions involving the Fed, as a key reason for his decision to stay on.
In fixed income markets, Treasury yields moved higher over the period, while the investment-grade corporate bond market delivered negative returns and slightly underperformed Treasuries.
The week began with heavy primary market issuance, though demand remained strong as most deals were oversubscribed. Similarly, the high yield segment had a rougher start and experienced early weakness, before a late-month improvement in risk sentiment supported a modest recovery.
China: Stability, But Not Comfort
Rating agency Moody’s revised China’s credit outlook to “stable” from “negative” while affirming its A1 rating. The agency cited the economy’s resilience and the government’s fiscal capacity to handle debt despite ongoing domestic and external headwinds.
Although Moody’s expect China’s debt burden to rise, it maintains that downside risks remain contained and argues that low interest rates and high domestic savings will keep servicing costs manageable. It also noted that the scale and diversification of China’s economy, alongside increasing competitiveness in higher value-added sectors, are likely to offset structural pressures such as an aging population.
China’s Finance Ministry welcomed the move. They promised more restructuring and stronger long-term fiscal discipline. A stable China is good for global commodity demand. For Nigerian investors with exposure to industrial or oil-linked assets, this is a small tailwind worth watching.
Sub-Saharan African Economies
The Eurobond market reflected mixed sentiment across several African economies:
South Africa’s Producers Are Feeling the Heat
South Africa’s Producer Price Index inflation jumped to 2.3% in March 2026, up from a seven-month low of 1.8% in February. That is the highest reading in months and reflects a broad-based increase in producer costs.
The main upward drivers were food, beverages, and tobacco products, which rose 2.2% (compared to 2.3% previously). Furniture and other manufacturing costs spiked even harder, accelerating to 14.1% from 12.1%.
Additional price pressures showed up in non-metallic mineral products (7.1% vs. 6.5%), electrical machinery and communication and metering equipment (3.9% vs. 2.5%), and transport equipment (1.0% vs. 0.4%).
Even the usual relief from cheaper coal and petroleum products faded. That decline moderated from -8.9% to -4.8%, contributing less downward pressure on overall prices.
On a month-on-month basis, producer prices increased by 1.1% in March. That is the strongest monthly rise since March 2024, following a flat reading in February, according to Statistics South Africa.
Domestic Economy
Major Updates During the Week
1. Business Activity Contracts for the First Time in 16 Months
According to the Central Bank of Nigeria’s Purchasing Managers’ Index for April 2026, business activity contracted for the first time in 16 months. The composite PMI declined to 49.40 points, down from 53.20 points in March.
A reading below 50 signals contraction. After more than a year of expansion, this is a notable reversal. Manufacturing, services, and agriculture all felt the pinch. For an economy that had been showing steady recovery, this is a wake-up call.
2. Nigeria’s World Bank Debt Crosses $19 Billion
Nigeria’s debt to the World Bank rose by $2.08 billion in one year to $19.89 billion as of December 31, 2025. That is according to an analysis of external debt stock data released by the Debt Management Office.
A 12% jump in one year is significant. More borrowing is not inherently bad, especially if it funds infrastructure and productive capacity. But the pace matters. Every dollar borrowed today is a dollar that must be serviced tomorrow.
Equity Market: NGX Sustains Upward Momentum Amid Strong Sectoral Gains
The Nigerian equities market sustained its bullish momentum for a fifth consecutive week. The NGX All-Share Index gained 7.33% to close at 242,277.81 points. Market capitalization lifted to ₦155.99 trillion. Gains were largely driven by buying interest in industrial goods, oil and gas, and consumer goods stocks.
Market breadth was mixed. There were 52 gainers and 53 decliners. The gainers were led by TIP, UACN, and BUACEMENT. The decliners were topped by UBA, FIRSTHOLDCO, and ACCESSCORP.
On the corporate front, Neimeth Pharmaceuticals launched a rights issue aimed at strengthening its capital base. Companies are raising money while investor sentiment is hot. Sector performance was broadly positive. The Industrial Goods index led gains.
Fixed Income Market: Domestic Assets Gain as Liquidity Remains Strong
Trading activity was mixed in the domestic fixed income market this week. Nigerian Treasury bill yields closed broadly flat. The average yield was unchanged at 17.47%. Modest demand at the long end offset slight selloffs at the short and mid tenors.
The bond market weakened marginally. Average yields rose by 5 basis points to 16.09%, driven by upward movements at the mid and long end despite improved demand at the short end.
In the Eurobond market, Nigeria’s sovereign papers traded higher, closing at 6.86% versus 6.89% previously.
Flat T-bill yields in a high-rate environment suggest liquidity is still ample. For income-focused investors, the short end of the bond curve still offers attractive real returns if inflation stays contained. The bond market’s slight weakness at the long end suggests some investors are locking in profits after the recent rally.
The Bottom Line
Last week was a study in contrasts. For the average investor, the lesson is simple: diversification is not a buzzword. It is a survival tool. When one market stumbles, another finds its footing.
There’s optimism in equities, caution in fixed income, and tension underneath global policy decisions. That combination usually doesn’t last forever. The next few weeks will likely make things clearer. Either the optimism holds, or reality starts catching up. For now, this is a market that rewards attention. Not assumptions.
