RFA Breakfast Paper - April 27, 2026

Brent Pushes Above $111 as Iran Conflict Drags On

Brent crude futures climbed above $111 per barrel, approaching levels last seen in March, as stalled negotiations between the United States and Iran kept markets on edge. President Donald Trump was reportedly dissatisfied with Tehran’s latest proposal, with Iran’s nuclear program remaining a key sticking point. Iran, via Pakistan, signaled willingness to end hostilities if the US lifts its naval blockade, agrees to revised transit rules, and provides security guarantees. However, with the conflict now in its ninth week, supply disruptions persist, particularly through the Strait of Hormuz, which typically accounts for ~20% of global energy flows and remains effectively shut. The International Energy Agency has warned of an unprecedented supply shock, even as rising prices risk dampening global demand, keeping oil markets caught between tightening supply and potential demand destruction.

U.S. Markets Rise Ahead of Big Tech Earnings

U.S. equity markets opened the week higher as investors positioned for the Federal Reserve’s April meeting and a wave of earnings from major technology firms. In fixed income, yields pushed higher, with the 10-year Treasury yield reaching 4.33%, reflecting steady expectations around growth and inflation. Attention now turns to earnings and their ability to sustain the market’s upward momentum. Five of the “Magnificent 7” companies; including Alphabet Inc., Amazon, Meta Platforms, Microsoft, and Apple Inc., are set to report this week, anchoring market focus on big tech performance. Early earnings data has been encouraging, with roughly 82% of S&P 500 companies beating expectations and delivering solid upside surprises. Growth estimates have also been revised higher, pointing to another quarter of strong corporate performance, led by the technology sector.

NGX Pullback as Profit-Taking Ends 14-Day Rally

The The Nigerian equity market kicked off the week on a softer note, as investors locked in gains and snapped a 14-day winning streak. Both the NGX All-Share Index and market capitalization declined by 0.94% in the first session following the extension of trading hours, signalling a shift in near-term sentiment. Selling pressure spread across major sectors, with profit-taking concentrated in bellwether and mid-cap stocks. The benchmark index shed 2,122.04 points to close at 223,602.29, while market capitalization dropped by ₦1.37 trillion to ₦143.97 trillion, reflecting broad-based declines across large-cap counters.

Despite the bearish close, trading activity showed mixed dynamics, suggesting selective participation rather than a full risk-off retreat. Total volume traded rose by 8.05% to 678.17 million units, even as transaction value slipped marginally by 0.85% to ₦44.14 billion across 82,838 deals. Overall, the session points to a healthy pause rather than a reversal, with investors recalibrating positions after an extended rally while still maintaining engagement in high-liquidity counters.