Economy
Asian, European stocks plunge after US jobs report
By Francesca Hangeior
Asian and European markets sank Monday after an outsized US jobs report dealt another blow to hopes for more interest rate cuts, while oil extended a rally sparked by new sanctions on Russia’s energy sector.
The equity sell-off tracked hefty losses on Wall Street, where all three main indexes finished more than one per cent lower as the new trading year continued to falter.
Keenly awaited data on Friday showed the US economy created 256,000 jobs last month, a jump from November’s revised 212,000 and smashing forecasts of 150,000-160,000.
The figures followed news that the crucial US services sector picked up in December, with the prices component soaring more than expected to the highest level since last January, while another report showed job openings hit a six-month high in November.
Hopes that the Federal Reserve will continue cutting rates through 2025 — having made three trims last year — were dashed when in December it indicated just two reductions over the next 12 months, down from four tipped previously.
The hawkish pivot came as inflation continues to hover above the bank’s two percent target, while there are also concerns that president-elect Donald Trump’s plans to slash taxes, regulations and immigration will reignite prices.
“Given a resilient labour market, we now think the Fed cutting cycle is over,” said Bank of America’s Aditya Bhave and other economists.
“Inflation is stuck above target: in the December (summary of economic projections), the Fed not only marked up its base case for 2025 significantly, but also indicated that inflation risks were skewed to the upside. Economic activity is robust.
“We see little reason for additional easing.”
Markets in Sydney, Singapore, Seoul, Mumbai, Taipei, Manila, Bangkok and Jakarta all sank. Tokyo was closed for a holiday.
Hong Kong and Shanghai also fell but pared initial losses as data showed Chinese exports and imports topped forecasts in December.
London, Paris and Frankfurt fell at the open.
On currency markets the pound was wallowing around lows not seen since the end of 2023 owing to fading hopes for US rate cuts as well as worries about the British economy. The euro struggled at its weakest since November 2022.
Surging oil prices added to unease, with both main contracts jumping more than percent — extending Friday’s gains of more than three percent — after the United States and Britain announced new sanctions against Russia’s energy sector, including oil giant Gazprom Neft.
However, commentators do not expect prices to spike too much, even amid speculation that Trump will hit Iran with fresh sanctions.
“A significant and perhaps underpriced risk to crude oil prices is the potential for supply to outstrip demand, especially given OPEC+’s intention to reintroduce barrels to the market,” said Stephen Innes at SPI Asset Management.
“Even if US sanctions curtail Iranian oil production by 1.5 million barrels a day — a scenario similar to that during Trump’s previous presidency — this amount could easily be compensated by OPEC+, which is currently holding back 5.8 million barrels a day, or 5.3 percent of the total global production capacity.”
However, he added that some issues could lead crude to rocket, including an escalation of the Middle East crisis, a significant reduction in Russian output or exports and a strategic about-face by OPEC+ to slash production.
The World Bank’s latest Africa’s Pulse report has projects a grim future for Nigeria, with poverty expected to rise by 3.6 percentage points by 2027.
Released during the IMF and World Bank Spring Meetings in Washington, DC, the report cites Nigeria’s reliance on oil, economic fragility, and governance challenges as key drivers.
It highlights the country’s structural economic weaknesses, dependence on oil revenues, and national fragility as key barriers to meaningful poverty reduction.
“Poverty in resource-rich, fragile countries, including large economies like Nigeria and the Democratic Republic of Congo, is projected to increase by 3.6 percentage points between 2022 and 2027,” the report stated.
Despite recent growth in Nigeria’s non-oil sector during the last quarter of 2024, the World Bank warns that this progress is unlikely to translate into widespread poverty alleviation due to ongoing fiscal and institutional challenges.
The report emphasizes that Sub-Saharan Africa remains the world’s poorest region, with an overwhelming 80% of the globe’s 695 million extreme poor residing there in 2024.
Within the region, half of the 560 million extremely poor people were located in just four countries, including Nigeria.
In stark contrast, South Asia accounted for 8% of the world’s extremely poor population, East Asia and the Pacific 2%, the Middle East and North Africa 5%, and Latin America and the Caribbean 3%.
The World Bank attributes the rising poverty in Nigeria and similar economies to weakening oil prices and fragile governance structures, noting: “This follows a well-established pattern whereby resource wealth combined with fragility or conflict is associated with the highest poverty rates, averaging 46% in 2024, which is 13 percentage points higher than in non-fragile, resource-rich countries.”
Meanwhile, non-resource-rich countries in Africa are experiencing stronger economic growth and faster poverty reduction, buoyed by high agricultural commodity prices and more resilient fiscal policies.
To reverse Nigeria’s downward poverty trend, the World Bank recommends reforms that prioritize inclusive economic growth and stronger public financial management.
It calls on the government to focus on “improving fiscal management and building a stronger fiscal contract with citizens to promote inclusive economic development and long-term poverty alleviation.”
What Is the Dollar to Naira Exchange Rate at the Black Market (Aboki FX)?
Here is the Dollar to Naira exchange rate at the parallel market, popularly known as the black market (Aboki fx), for Tuesday, April 23, 2025.
You can exchange your dollars for naira at the following rates:
Black Market Exchange Rate (Lagos – April 23, 2025):
According to sources at the Bureau De Change (BDC), the exchange rate at the Lagos parallel market saw traders buying at ₦1610 and selling at ₦1620 per US dollar.
It’s important to note that the Central Bank of Nigeria (CBN) does not recognize the black market. The CBN advises individuals seeking foreign exchange transactions to do so through their banks.
Dollar to Naira Exchange Rates
Market Type Buying Rate Selling Rate
Black Market ₦1610 ₦1620
CBN Official Rate ₦1591 (Low) ₦1606 (High)
Note: Forex rates vary across dealers and regions, and actual rates may differ from those listed.
Meanwhile, the Nigeria Customs Service (NCS) has announced the seizure of 298 smuggled items worth ₦7.6 billion between January and March 2025. The NCS also disclosed that it generated a total revenue of ₦1.75 trillion in the first quarter of the year.
Volvo Group has announced plans to lay off up to 800 workers at three of its U.S. facilities over the next three months, citing ongoing market uncertainty and declining demand exacerbated by tariffs introduced under the administration of President Donald Trump.
The affected locations include the Mack Trucks plant in Macungie, Pennsylvania, as well as Volvo Group sites in Dublin, Virginia, and Hagerstown, Maryland.
In a statement on Friday, Volvo Group North America confirmed that between 550 and 800 employees would be impacted.
The company, a subsidiary of Sweden’s AB Volvo, employs nearly 20,000 people across North America.
The layoffs come amid wider turmoil in the automotive and manufacturing sectors, as shifting U.S. trade policy and a series of tariffs continue to drive up production costs. Economists have pointed to the uncertainty surrounding Trump’s trade strategy as a factor undermining both business and consumer confidence, with concerns mounting over a potential economic slowdown or recession.
According to Volvo, the company is grappling with a decline in heavy-duty truck orders, driven by instability in freight rates, anticipated regulatory changes, and the growing financial burden of tariffs. “We regret having to take this action, but we need to align production with reduced demand for our vehicles,” a company spokesperson stated in an email quoted by Reuters.
Volvo’s announcement marks another blow to an industry already navigating a complex web of supply chain challenges and fluctuating market conditions, with other manufacturers also warning of potential cost hikes and disruptions tied to global trade disputes.
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