RFA Breakfast Paper - May 13, 2026
Brent Holds Near $106 as Markets Watch Trump–Xi Meeting
Brent crude futures steadied near $106 per barrel, pausing their recent rally as investors turned attention to an upcoming meeting between Donald Trump and Xi Jinping. Discussions are expected to focus primarily on trade issues rather than the ongoing conflict involving Iran, though Washington recently intensified pressure on Tehran through new sanctions tied to oil sales to China, the largest buyer of Iranian crude. Supply concerns remain elevated. The US Energy Information Administration reported that oil and fuel flows through the Strait of Hormuz dropped by nearly 6 million barrels per day in Q1 following the outbreak of the Middle East conflict. Meanwhile, the International Energy Agency warned that the global oil market could remain significantly undersupplied until October, even if hostilities ease next month. Adding to tight supply expectations, Saudi Arabia reportedly informed OPEC that its oil output has fallen to the lowest level since 1990.
U.S. Equities Rise Despite Elevated Inflation Data
U.S. equities closed higher on Wednesday as investors looked past stronger-than-expected producer inflation data and instead focused on resilient economic growth and solid corporate earnings expectations. Sentiment also improved after Kevin Warsh was confirmed as the next Federal Reserve Chair, while Jerome Powell remains on the Fed Board. Treasury yields climbed, with the 10-year yield reaching 4.47%, reflecting expectations that the Federal Reserve may keep interest rates elevated for longer. Overseas, Asian markets mostly advanced as investors monitored the Trump-Xi meeting, while the US dollar strengthened alongside rising bond yields and a less-dovish policy outlook. Producer price inflation accelerated to 6.0% year-over-year in April, above expectations of 5.0%, largely driven by higher energy prices. Core PPI also rose more than forecast to 5.2%, signaling persistent underlying inflation pressures and the possible impact of tariffs on business costs. While higher input costs could pressure corporate profit margins, investors appeared to view much of the inflation increase as temporary and linked mainly to elevated oil prices.
Investors Sustain Bargain Hunting as Nigerian Equities Extend Gains
The Nigerian equity market maintained its upward momentum as investors continued to accumulate medium- and large-cap stocks across major sectors, pushing key market indicators higher at the close of trading. Positive sentiment remained evident throughout the session, with bargain hunting activities supporting gains in the broader market despite mixed trading dynamics. Consequently, the NGX All-Share Index advanced by 429.72 basis points, representing a 0.17% increase to settle at 252,841.39. In the same vein, market capitalization appreciated by ₦277.69 billion to close at ₦162.05 trillion, reflecting renewed confidence among market participants and sustained interest in fundamentally strong equities. Trading activity, however, painted a mixed picture as investors executed fewer transactions by volume but committed significantly more capital to the market. Total traded volume declined by 17.00%, suggesting a slowdown in overall market participation, while total value traded surged by 24.77%, indicating stronger positioning in high-value counters and blue-chip stocks. At the close of the session, investors exchanged approximately 1.68 billion units worth ₦109.44 billion across 76,557 deals. The divergence between declining volume and rising value suggests that institutional and high-net-worth investors remained active in selective positions, reinforcing the market’s resilient tone and highlighting continued confidence in the Nigerian equities space despite cautious broader participation.
