RFA Breakfast Paper - May 18, 2026
Angola's Money Supply Hits New Record High
Broad money supply (M3) in Angola climbed to a fresh record of AOA 19.26 trillion in April 2026, up from AOA 18.12 trillion in March, reflecting continued liquidity expansion in the economy. M3 has now more than doubled its long-term average of AOA 8.30 trillion since 2009. The latest reading marks the highest level on record, highlighting sustained monetary growth amid easing inflation and improving macroeconomic stability. Historically, Angola’s money supply hit a low of AOA 2.43 trillion in April 2010, underscoring the significant expansion in domestic liquidity over the past decade.
Rising Treasury Yields Drag U.S. Stocks Lower Ahead of NVIDIA Earnings
U.S. equity markets edged lower on Monday as rising government bond yields pressured investor sentiment and weighed on rate-sensitive sectors. Technology and industrial stocks led declines, while energy shares outperformed amid higher oil prices driven by ongoing disruptions in the Strait of Hormuz. The cautious tone extended across global markets, with most Asian equities closing lower overnight, although European markets advanced. Meanwhile, the U.S. dollar weakened against major currencies after recording strong gains last week, as investors reassessed the outlook for interest rates and global growth. Bond yields continued to climb across major developed economies, including the U.S., Japan, Germany, France, and the U.K., reflecting growing concerns that inflation could remain elevated for longer. In the U.S., persistent strength in oil prices has fueled worries that broader inflationary pressures may delay any near-term Federal Reserve rate cuts. Markets are increasingly pricing in the possibility that the Fed’s next policy move could eventually be another rate hike rather than a cut, reinforcing pressure on growth-oriented equities. Investor attention is now shifting toward NVIDIA’s earnings release on Wednesday, which is expected to provide a major test for AI-driven market optimism. Consensus forecasts project earnings per share of $1.75, representing a 116% year-on-year increase, with investors closely watching the company’s outlook for signals on whether AI momentum can continue supporting technology leadership.
Nigerian Equities Extend Pullback as Profit-Taking Persists
The Nigerian equity market traded slightly lower to open the week, as continued profit-taking in mid-cap stocks kept investors cautious despite pockets of strength in banking and oil counters. The NGX All-Share Index declined by -0.05% to close at 250,204.83, while market capitalization shed ₦80.82 billion to settle at ₦160.36 trillion. Market activity also weakened during the session, with total traded volume and value falling by -26.16% and -16.36% respectively, as investors exchanged 800.46 million shares worth ₦37.05 billion across 87,096 deals. The softer trading pattern reflected reduced buying conviction following the market’s recent rally. Sectoral performance remained broadly negative, with losses in Insurance (-0.91%), Consumer Goods (-0.26%), and Industrial Goods (-0.09%) weighing on overall sentiment. However, gains in Banking (+0.17%) and Oil & Gas (+0.40%) stocks helped cushion the decline and signalled continued investor interest in selective value and defensive plays. Overall, the session reflected a market in consolidation mode, with investors balancing profit-taking activities against opportunities in resilient sectors.
