Global markets suffered heavy losses this week as investors aggressively dumped risky assets amid rising economic fears.
Nigerian stocks, US equities, Bitcoin, and gold all recorded sharp declines after strong US economic data shocked investors worldwide.
Consequently, Nigeria’s stock market lost nearly ₦5 trillion within one week.
Nigerian Stock Market Selloff
The selloff followed months of strong market gains.
Therefore, investors quickly secured profits from major stocks like MTN Nigeria, Aradel Holdings, and BUA Cement after the market rallied over 60% this year.
Rising US interest rates impact flows
Meanwhile, rising US interest rates pushed foreign investors towards safer dollar assets.
In addition, Nigerian Treasury Bills attracted more funds after yields climbed above 16%.
Global Risk-Off Sentiment Intensifies
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Globally, panic intensified after the US economy added 172,000 jobs in May, far above expectations.
As a result, the strong figures reduced hopes for Federal Reserve interest rate cuts.
Consequently, investors abandoned risky technology stocks and cryptocurrencies.
AI and chip companies recorded major losses, while Meta Platforms lost 5.5% after announcing massive AI fundraising plans.
Bitcoin And Crypto Liquidation Wave
Furthermore, Bitcoin crashed below $60,000 as investors withdrew nearly $4 billion from Spot Bitcoin ETFs within two weeks.
Ethereum also dropped almost 10% during the wider crypto decline.
Finally, gold prices weakened sharply because rising Treasury yields strengthened the US dollar further.
