Tracking global market shifts is the easiest way to make smarter money decisions and protect your investments. Last week brought major updates. From new record highs on Wall Street and cooling inflation across West Africa to shifting local bond yields here at home.
Here is your roundup of how the financial markets performed during the week of August 3rd to 7th, 2026.
Global Economy
US: Big Tech Profits and Falling Oil Prices Drive Stocks to Record Highs
Major U.S. stock market indexes rose across the board this week, with several reaching fresh record highs. Market performance was driven by strong company profit reports, renewed investor excitement around artificial intelligence (AI) stocks, and lower energy prices. The technology-focused Nasdaq index recorded its strongest week since April, while the S&P 500, Russell 2000, and Dow Jones Industrial Average also posted solid gains.
Positive sentiment was supported by news of potential progress toward reopening the Strait of Hormuz, a key shipping route. This development pushed crude oil prices lower early in the week, easing fears about energy-driven inflation and bringing down government borrowing costs. On the economic front, U.S. employers cut 23,000 jobs in July, coming in weaker than expected and marking the fourth consecutive month of slowing job growth. Despite job cuts, the overall unemployment rate unexpectedly dipped to 4.1% alongside a decrease in workforce participation.
Europe: Business Growth Bounces Back Across Major Economies
European stock markets had a positive week, with the pan-European STOXX Europe 600 index advancing by 1.70%. Investor sentiment was boosted by resilient corporate earnings and lower crude oil prices early in the week. Germany’s DAX climbed 2.69%, France’s CAC 40 rose 2.41%, Italy’s FTSE MIB gained 2.96%, and the UK’s FTSE 100 added 0.30%.
Economic data showed encouraging signs of recovery across the region. The European business activity index for the service sector rose to 51.7 in July from 49.4 in June, hitting its highest level in five months. This growth was accompanied by increased hiring and improving business confidence. Both France and Germany saw their service sector indexes bounce back to 49.8, indicating a much slower contraction and strengthening domestic demand.
Sub-Saharan African Economies
The African Eurobond market saw mixed reactions from investors last week. Eurobonds are dollar-denominated loans issued by African governments to international investors. Nigerian bonds saw a small rise in yields, which means investor interest was slightly muted. On the other hand, Kenyan and South African bonds saw their yields rise further. Senegal experienced mixed movements, with its longer-tenor yield easing slightly.
Ghana: Inflation Cools to 4.6% Despite Currency Depreciation
Ghana’s annual inflation rate dropped significantly to 4.6% in July 2026, down from 5.3% in June and 12.1% recorded a year earlier. Food price increases slowed down to 3.1%, showing strong price stabilization following the country’s debt restructuring. However, the local currency (the Cedi) experienced an 11.9% depreciation from the end of 2025 to July 2026 due to high foreign currency demand.
Gabon: Successful $920 Million Eurobond Issuance Reopens Capital Access
Gabon successfully finalized its $920 million 7-year Eurobond issuance, exceeding its initial $750 million goal. The bond carries an annual interest rate (coupon) of 9.375%, with the money set aside for public infrastructure projects and settling old debts. While strong demand confirmed that Gabon can access international investors again, borrowing remains expensive, requiring about $86 million in annual interest payments.
Domestic Economy
Major Updates During the Week
Before looking at the trading floors, here is a quick look at where our core economic indicators stand:
1. Foreign Reserves Stand Firm Above $52 Billion
Nigeria’s external reserves maintained a strong trajectory, staying comfortably above the $52 billion threshold to reach $52.03 billion on August 6, 2026. External reserves act as a country’s national financial cushion, composed of foreign currencies and foreign assets held by the central bank to meet international payment obligations and back the national currency.
This growing reserve buffer was driven by sustained foreign exchange inflows from crude oil revenues, foreign investments, and international transfers, coupled with rising trader confidence across local liquidity channels. Having over $52 billion in reserves provides the Central Bank of Nigeria (CBN) with crucial leverage. It ensures the central bank has enough liquidity to fulfill foreign currency demand for imports and dividend repatriations, which deters speculative trading and protects the economy from sudden currency shocks.
2. Naira Experiences Slight Depreciation at Official Window
The Naira experienced a minor depreciation at the official foreign exchange window during the week, closing at ₦1,365.69/$ on August 7 compared to ₦1,363.16/$ at the end of the previous week. This translated to a slight loss of ₦2.53 or 0.19%.
While any drop in currency value grabs attention, a 0.19% movement within a very narrow trading range is a sign of market stability rather than distress. Rather than signaling a currency shortage, minor fluctuations like this reflect standard daily rebalancing between foreign exchange supply and commercial demand. For businesses and importers, this predictable range reduces exchange rate volatility, making it easier to forecast costs for international trade.
Equity Market: Banking Shares Lead Weekly Growth
The Nigerian equities market managed a modest weekly gain, propelled by selective buying in major banking and large-cap stocks. The NGX All-Share Index (ASI), which measures the overall performance of all listed stocks, rose by 0.12% week-on-week to close at 245,573.60 points. Consequently, total market capitalization expanded to ₦158.513 trillion.
However, underlying trading activity revealed underlying market weakness, known as negative market breadth. Only 26 stocks recorded price gains, while 63 stocks lost value and 58 remained unchanged. This means that although the broader index ended in the green, more individual stocks actually lost money during the week.
The overall index was held up primarily by heavy-hitting banking stocks, with the Banking Index rising by 2.33%. Strong performances from Tier-1 and Tier-2 institutions like FCMB (+13.10%) and FIRSTHOLDCO (+12.23%), alongside top overall gainer AVACAP (+33.33%), offset broader market declines. Conversely, profit-taking hit other sectors hard. The Insurance Index emerged as the worst-performing sector, falling by 3.31%, while stock sell-offs were led by THOMASWY (-26.71%), TRANSEXPR (-23.76%), and CMFC (-22.68%).
Fixed Income Market: Selling Pressure Drives Up Short-Term Bond Yields
In the local fixed income market, short-term Treasury bill yields fell slightly to average 16.41%. However, mid-tenor Treasury bills rose slightly to 18.12%.
In the government bond market, average yields rose by 25 basis points to 17.21% due to intensified selling pressure. Short-term bond yields jumped significantly from 17.07% to 17.96% (an 89 bps rise), offering higher returns for short-term investors. Mid-term and long-term bond yields also pushed upward to 17.38% and 16.67% respectively.
What This Means for Your Money
Positive indicators like a steady Naira and $52 billion+ in reserve buffers show that our economic foundation is staying steady.
This is a great time to review your portfolio. While stock market gains are great news, resist the urge to buy into speculative hype. Look for dependable, dividend-paying companies for long-term growth. To balance out your risk and keep your cash working hard, consider fixed-income assets like Treasury bills that offer safe, competitive yields. Taking a measured, balanced approach ensures your money stays protected no matter where the market moves.
