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Nigeria's financial markets have entered turbulent waters following threats of sanctions and possible military action from U.S. President Donald Trump. The remarks, made in response to what he described as Nigeria's failure to protect Christian communities, sent immediate shockwaves across Africa's largest economy.

The Nigerian Stock Exchange saw sharp losses within hours, while consumer prices continued their upward climb—fueling fears that inflation may worsen in the coming weeks. Economists warn that sustained uncertainty could undermine investor confidence and weaken macroeconomic stability at a critical time.

"There is growing concern that prolonged sanction threats could trigger capital flight and intensify pressure on the naira," explains economic analyst Dr. Joel Haruna, speaking from Abuja. He notes that Nigeria's reliance on U.S. trade and financial flows—particularly in oil, security cooperation, and development funding—means key sectors such as energy, finance, and manufacturing could face significant strain if relations deteriorate.

Experts say the Nigerian government may need to accelerate diplomatic engagement with Washington while simultaneously stabilizing the forex market, strengthening trade diversification, and boosting investor reassurance to cushion potential shocks.

Source: Yahoo Finance

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The Bank of Japan (BOJ) must continue to normalise monetary policy by raising real interest rates to "a state of equilibrium" to avoid creating unintended distortions in the future, board member Junko Koeda said on Thursday.

The remarks suggest Koeda, an academic who joined the central bank's board in March, will vote in favour of an interest rate increase if proposed by BOJ governor Kazuo Ueda in the coming months.

Corporate profits remain high, the economy is resilient and prices have been "relatively strong," Koeda said, adding that the recent surge in food prices could affect inflation expectations.

The output gap has been around 0%, while conditions in the job market have been tight due to labour shortages, she said.

"In this situation, the BOJ must continue to raise the policy interest rate and adjust the degree of monetary accommodation in accordance with improvement in economic activity and prices," Koeda said in a speech.

Last year, the BOJ exited a decade-long, massive stimulus programme and raised interest rates twice — including in January. It has kept its policy rate steady at 0.5% since then, even as consumer inflation has remained above its 2% target for more than three years.

With real interest rates "clearly low" compared with other countries, the BOJ can keep stimulating consumption and investment, even if it raises nominal rates slightly, she said.

"The BOJ needs to proceed with interest rate normalisation, that is, to return real interest rates to a state of equilibrium, to avoid creating unintended distortions in the future," Koeda said.

Markets are closely watching BOJ policy signals as Prime Minister Sanae Takaichi has voiced displeasure over the idea of another rate rise in the near term, while urging the central bank to cooperate with government efforts to reflate the economy.

With prospects of prolonged low rates fuelling unwelcome yen declines, however, Finance Minister Satsuki Katayama said on Wednesday that she had no objection to the BOJ's moderate rate-hike path.

The BOJ is scheduled to hold its next policy-setting meeting on Dec 18 and 19, followed by a meeting in January. Many market participants expect the central bank to raise rates to 0.75% either in December or January.

Two of the BOJ's nine members unsuccessfully proposed a rate increase to 0.75% in September and October, in a sign of the bank's increasing attention to inflationary pressure.

Rates still near low end of neutral

At a press conference held after the speech, Koeda said the BOJ's policy rate was still near the lower end of what the central bank views as neutral to the economy.

When asked how soon the BOJ should raise interest rates, Koeda said: "That's a decision to be made by scrutinising underlying economic and price developments."

"With overseas uncertainty remaining, we must look at how this would affect companies' wage-setting behaviour," she said.

Ueda has said that the BOJ will continue to raise interest rates if it is convinced that underlying inflation will stabilise around the 2% target.

"I believe that underlying inflation is about 2%," Koeda said. "But in order to achieve our price target, it is important to examine the extent to which underlying inflation has remained stable or been anchored."

It is also important to scrutinise whether inflation expectations would be stable and look at factors that affect prices, such as the strength of the economy, Koeda said.

While Ueda has said that the BOJ needs more clarity on the outlook for next year's wage negotiations, Koeda said she was also focusing on developments in Japan's minimum wage, winter bonus payments and how increasing job mobility might affect pay.

Source: Theedgemarkets

UBS has raised its mid-year 2026 gold price forecast, arguing that the drivers behind this year's surge remain firmly in place as the market heads into another period of heavy investor and central-bank demand.

Gold has held above $4,000 an ounce after a steep climb in 2025 that left it as the year's strongest major asset. UBS strategists said the consolidation has not altered their outlook and now see the metal reaching $4,500 an ounce by June 2026, up from the previous $4,200 call.

"The gold price has stabilized above USD 4,000/oz after a phenomenal run in 2025," strategists led by Wayne Gordon wrote, and despite the pause, they forecast "even higher prices in 2026," prompting their forecast hike.

The strategists point to a combination of further Federal Reserve rate cuts, lower real yields, geopolitical tensions, and rising fiscal concerns in the U.S., all of which they believe should sustain demand from both financial investors and reserve managers.

They also flag increased political noise ahead of the midterm elections as another support for safe-haven buying.

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UBS maintains an Attractive stance on gold and continues to recommend long exposure in its asset allocation. The strategists believe gold "remains an effective portfolio hedge (even at current levels)."

A key part of the bank's bullishness is a rebound in exchange-traded fund (ETF) inflows next year, supported by easier monetary conditions.

UBS forecasts around 750 metric tons of ETF buying in 2026, which would still be more than double the average annual pace seen in the decade after 2010.

The bank also expects persistent central-bank and sovereign wealth demand, projecting purchases of 900 metric tons next year, a moderation from 2025 but far above long-term norms.

"Material underreporting (versus monthly IMF reported purchases) and recent anecdotal conversations with reserve managers signal to us a strong appetite for adding to existingreserves in 2026," strategists noted.

UBS has also raised its upside case to $4,900 an ounce, citing a potential spike in political and financial risks. The bank expects some consolidation around $4,300 an ounce after U.S. political events in late 2026, but sees the overall demand profile as strong.

Source: Investing

Israel's Prime Minister Benjamin Netanyahu visited Israeli troops deployed in southern Syria, drawing strong condemnation from the government in Damascus, which denounced the trip as a violation of sovereignty.

Israel expanded its military presence in southern Syria after the ousting of Bashar al-Assad last December, seizing positions east of a U.N.-patrolled buffer zone that separates the Israeli-occupied Golan Heights from Syrian territory.

Wearing a flak jacket and helmet, Netanyahu on Wednesday visited troops on Syrian territory, according to photographs published by his office. He reiterated Israel's commitment to protect Syria's Druze minority, whose community straddles the border into northern Israel.

"We attach immense importance to our capability here, both defensive and offensive, safeguarding our Druze allies, and especially safeguarding the State of Israel and its northern border opposite the Golan Heights," Netanyahu told the troops, according to a statement from his office.

"This is a mission that can develop at any moment, but we are counting on you," he said.

The Islamist-led government in Damascus said Netanyahu's visit was "a dangerous violation of Syrian sovereignty and unity," and called it an attempt to "impose a fait accompli."

There was no immediate comment from the Israeli government.

TALKS ON A SECURITY PACT

Israel captured the Golan Heights from Syria in a 1967 war and later annexed it, a move not recognised by most countries. Syria has demanded that Israel returns to the original buffer zone, but senior Israeli officials have said they will not relinquish the new posts.

For months, Syria has been in U.S.-brokered talks with Israel to reach a security pact that Damascus hopes will reverse Israel's recent seizures of its land but that would fall far short of a full peace treaty.

The talks have faltered since Israel introduced a new demand, opens new tab to allow the opening of a "humanitarian corridor" to Syria's southern province of Sweida. Syria rejected the request as a breach of its sovereignty.

A Syrian military official said the visit showed Israel was not willing to relinquish any territory.

"Netanyahu's visit sends a message: we won't withdraw from the areas we entered after December 8... Regardless of the security deal, its future or its fate, this is the message they're sending Syria - that Israel is not willing to give up these outposts," the official told Reuters.

The two countries have technically been at war since the creation of Israel in 1948, despite periodic armistices. Syria does not recognise the state of Israel.

Since Assad's ousting, Israel has carried out unprecedented strikes on Syrian military assets including the defence ministry, sent troops into its south and lobbied the U.S. to keep Syria weak and decentralised.

Source: Reuters

Limited Progress Since Summer Summit Highlights Persistent Strain

Source: Bloomberg