In this week’s edition:
· Global Equity Markets Log Second Straight Week of Gains on Sustained Investor Optimism
· Gold Falls by 1.81%, Pressured by Stronger U.S. Inflation Data That Diminished Rate-Cut Expectations
· Ghana’s Treasury Auction Posts Second Consecutive Undersubscription of 35.68% as Yields Continue to Decline
· Ghana Stock Exchange Extends Rally; GSE-CI Rises to 51.63% YTD, While GSE-FSI Rebounds to 43.49% YTD
Kindly click to view the full report: Global Markets Update - August 18, 2025
AROUND THE GLOBE
· US Inflation Holds at 2.7%, Core Rises
· US annual inflation stayed at 2.7% in July, below forecasts of 2.8%. Energy costs fell further, led by gasoline (-9.5%) and fuel oil (-2.9%), while shelter inflation eased slightly to 3.7%. In contrast, prices for used cars, trucks, and transportation services picked up. Core inflation accelerated to 3.1%, its highest in five months, with monthly core CPI rising 0.3%, the sharpest increase since January.
· US Business Inventories Up 0.2%
· US business inventories rose 0.2% in June 2025, in line with expectations, after being flat in May. The increase was driven by a rebound in wholesale inventories (+0.1%), stronger manufacturing inventories (+0.2%), and steady retail inventories (+0.2%). Year-over-year, total inventories were 1.6% higher.
· Euro Area GDP Expands by 1.4% in Q2
· The Euro Area economy expanded by 1.4% year-on-year in Q2 2025, easing slightly from 1.5% in Q1 and matching initial estimates. Ireland led with a strong 16.2% growth, while Cyprus (3.3%), Lithuania (3%), and Spain (2.8%) also posted solid gains. Major economies like Germany and Italy grew modestly at 0.4% each.
· Euro Area Trade Surplus Narrows More than Expected
· The Eurozone’s trade surplus narrowed to €7 billion in June 2025 from €20.7 billion a year earlier, below market expectations of €13 billion, as imports rose 6.8% while exports edged up only 0.4%.
· UK GDP Grows by 1.2% in Q2
· The UK economy expanded by 1.2% year-on-year in Q2 2025, slightly below 1.3% in Q1 but above the 1% forecast. Growth was supported by stronger household spending (+1.1%), higher government expenditure (+1.7%), and a rebound in exports (+3%). However, investment weakened sharply, with gross fixed capital formation slowing to 1.3% and business investment nearly flat at 0.1%.
GHANA
· Weak Jobs Creation and Labor Market Concerns
· Despite economic expansion, job creation lags far behind workforce growth. Only 250,000 jobs were created for 2.7 million new workers in the past decade. The World Bank highlights mismatches between rising education levels and available high-quality jobs, as well as weak labor demand in productive sectors, raising policy concerns for Ghana’s long-term growth.
AFRICA
· Kenya Delivers 7th Straight Rate Cut
· The Central Bank of Kenya lowered its benchmark interest rate by 25 bps to 9.50% in August 2025, marking a seventh straight cut and 350 bps of easing since August 2024. Inflation quickened to 4.1% in July from 3.8% but stayed within the 2.5%–7.5% target band. Governor Kamau Thugge said the move aims to boost private-sector credit and growth while keeping inflation expectations anchored and the exchange rate stable.
· Nigeria Inflation Rate Moderates for 4th Month
· Nigeria’s annual inflation rate slowed for the fourth month to 21.88% in July 2025, down from 22.22% in June, marking its lowest since January 2023. The moderation was supported by currency stability and lower gasoline prices. However, food inflation accelerated for a second month to 22.74% from 21.97%, while core inflation dropped to 21.30% from 22.76%. On a monthly basis, consumer prices rose by 1.99% in July, up from 1.68% in June.
Sources: Bloomberg, Reuters, Trading Economics
