Nigeria’s dollar bonds, naira drops after Trump's military action, aid cutoff threats

Nigeria’s dollar bonds fell hard on Monday, taking the worst losses across emerging markets after President Donald Trump warned that the United States could cut aid and consider military action if the Nigerian government does not stop the killings of Christians by Islamist ￰0￱ a post on Truth Social yesterday, Trump said:- “If the Nigerian Government continues to allow the killing of Christians, the ￰1￱ immediately stop all aid and assistance to Nigeria, and may very well go into that now disgraced country, “guns-a-blazing,” to completely wipe out the Islamic Terrorists who are committing these horrible atrocities. I am hereby instructing our Department of War to prepare for possible ￰2￱ we attack, it will be fast, vicious, and sweet, just like the terrorist thugs attack our CHERISHED Christians!

WARNING: THE NIGERIAN GOVERNMENT BETTER MOVE FAST!” All ten of the worst-performing EM sovereign dollar bonds at 9:50 ￰3￱ Lagos were Nigerian, according to Bloomberg ￰4￱ 2047 note posted the sharpest decline, falling 0.6 cents to 88.26 cents on the ￰5￱ Bola Tinubu rejected Trump’s remarks, saying the statement ignored, in his words, “the consistent and sincere efforts of the government to safeguard freedom of religion and beliefs for all Nigerians.” The selloff did not slow. Nigeria’s currency also weakened, with the naira dropping 1.2% to ₦1,442.80 per dollar, marking its sharpest intraday decline since June and the largest fall among emerging-market currencies ￰6￱ markets respond to ￰7￱ Nigeria remains Africa’s most populous country and a major OPEC crude producer, and any indication of instability tied to religion or security tends to pull foreign investors to the ￰8￱ Tinubu’s response did not reverse ￰9￱ working dollar-denominated government debt in London, New York, and Johannesburg reported heavy early-session selling, particularly in longer-dated ￰10￱ market reaction showed how political messaging from Washington can immediately reposition global funds out of Nigeria’s risk asset ￰11￱ drop in the naira reinforced the pressure.

A 1.2% move in a single day is notable in a sovereign FX market, especially given the tight liquidity conditions Nigeria has ￰12￱ fall reflected both local uncertainty and a broader retreat from EM currencies ￰13￱ markets move: tech rises, gold falls, currencies shift Meanwhile, elsewhere in global markets, the tone was very ￰14￱ futures were slightly higher as the week opened. S&P 500 futures rose 0.4%. Nasdaq-100 futures were up 0.6%. The Dow moved 0.1% ￰15￱ stocks led the ￰16￱ Technology gained 4%, while Nvidia and AMD each added about 1% in premarket ￰17￱ VanEck Semiconductor ETF (SMH) climbed 1% as traders continued rotating into large-cap ￰18￱ Platforms and Palantir were also higher before the ￰19￱ ended October ￰20￱ S&P 500 gained 2.3%, the Dow gained 2.5%, and the Nasdaq Composite rose 4.7% for the ￰21￱ markets told another ￰22￱ fell below $4,000 an ounce after China ended a tax rebate that many retailers had used when selling gold purchased through the Shanghai Gold Exchange and Shanghai Futures ￰23￱ bullion dropped as much as 1% in early ￰24￱ Ash, director of research at BullionVault, said, “This news could prove very welcome to traders and investors hoping for a deeper correction after last month’s spike.” Under the new policy, only exchange members selling investment-grade products will keep the full tax ￰25￱ that are not members can now only deduct 6% of input value-added tax instead of 13%.

This affects jewelry production, industrial uses, and bar and coin producers outside the exchange ￰26￱ gold traded 0.5% lower at $3,984.43 in ￰27￱ and palladium were lower, while platinum posted small ￰28￱ markets also ￰29￱ yen traded near 154.1 per dollar, sitting at an eight-and-a-half-month ￰30￱ euro was 0.16% lower at $1.1513, and the British pound was 0.4% lower at $1.3118. The ￰31￱ Index rose 0.16% to 99.89, reaching its highest level since August 1, while holding within its six-month trading band between 96 and ￰32￱ your strategy with mentorship + daily ideas - 30 days free access to our trading program