In this week’s edition:
· Most Global Equity Markets Closed Lower as Investors Reassessed Elevated Technology Valuations Following Disappointing Signals from Major Tech Players
· Gold Traded Near Record Highs, Rising by 2.4% for the Week on Expectations of Further US Monetary Easing
· Ghana’s Treasury Auction Posts 22.57% Oversubscription with Mixed Yield Movements
· Ghanaian Equities Extend Winning Streak: GSE-CI Up 0.66% w/w to 77.54% YTD as Financials Provide Support
Kindly click to view the full report: Global Markets Update - December 15, 2025
AROUND THE GLOBE
· Fed Lowers Rates for 3rd Time
o The Federal Reserve cut the federal funds rate by 25 bps to 3.50%–3.75% in December, its third consecutive reduction and the lowest level since 2022. The committee signaled only one additional 25 bps cut in 2026, while revising GDP growth higher and lowering inflation projections slightly. Unemployment forecasts were unchanged at 4.5% for 2025 and 4.4% for 2026.
· US Exports Climb to Second-Highest on Record
o US exports of goods and services increased 3% to $289.3bn in September 2025, marking the second-highest level on record. The rise was driven mainly by goods exports, which grew on the back of higher shipments of nonmonetary gold and pharmaceuticals, despite a decline in computer exports. Services exports edged lower, as weakness in travel and transport services offset modest gains in financial services.
· UK Economy Contracts Again in October
o The UK economy unexpectedly shrank by 0.1% m/m in October 2025, matching September’s decline and missing forecasts for modest growth, marking a fourth straight month of stagnation. The downturn was driven by a 0.3% fall in services, led by sharp drops in wholesale and retail trade and IT-related activities, alongside a 0.6% contraction in construction, weighed down by private housing. In contrast, production rebounded 1.1%, supported by manufacturing—particularly motor vehicles, mining, and utilities. Over the three months to October, GDP also fell 0.1%, underscoring persistent growth headwinds.
· Eurozone Industrial Output Hits 5-Month High
o Eurozone industrial production rose 0.8% m/m in October 2025, the strongest gain since May, supported by broad-based growth across sectors. Durable consumer goods led the increase, alongside solid gains in non-durables, energy, capital goods, and intermediate goods. Among major economies, Germany, Ireland, Spain, the Netherlands, and France recorded higher output, while Italy, Belgium, and Sweden saw declines. On a yearly basis, production expanded 2.0% y/y, a five-month high, signaling improving industrial momentum across the bloc.
· China Inflation Climbs to 21-Month High
o China’s annual inflation rose to 0.7% in November 2025, up from 0.2% in October and in line with expectations, marking the highest level since February 2024. The pickup was driven by food prices, which rose for the first time in ten months as declines in pork prices eased and fresh produce rebounded. Non-food inflation remained firm, supported by consumer trade-in programs, with steady gains in clothing, healthcare, and education. Core inflation held at 1.2% y/y, its strongest pace in 20 months. On a monthly basis, however, consumer prices slipped 0.1%, the first decline in five months, reflecting lingering demand softness.
GHANA
· Ghana GDP Growth Eases in Q3
o Ghana’s economy grew 5.5% year-on-year in Q3 2025, slowing from a revised 6.5% in Q2 and marking the weakest expansion since Q3 2024. The moderation was driven by a sharp slowdown in industry, which expanded just 0.8% (from 2.3%), and softer growth in services at 7.6% (down from 9.6%), though services remained resilient. Agriculture strengthened, accelerating to 8.6% from 7.1%, largely supported by the fishing sector. On a seasonally adjusted basis, quarterly GDP rose 1.3%, slightly below the 1.4% recorded in the previous quarter.
AFRICA
· Egypt November Inflation Slows to 12.3%, Below Forecasts
o Egypt’s annual urban inflation eased to 12.3% in November 2025, down from October’s 12.5% and below the 13.1% forecast. The slowdown was mainly due to softer food price increases (0.7% vs 1.5%), the lowest since April 2021, and moderation in clothing (14.9% vs 15.7%) and communications (11.7% vs 11.9%). However, housing (27.9%) and transport (28.9%) costs rose faster, driven by fuel price hikes and new rental laws, while restaurants, hotels, and miscellaneous goods also accelerated. On a monthly basis, the CPI rose just 0.3%, the softest increase in four months.
· Kenya Cuts Key Policy Rate to 9% for 9th Consecutive Meeting
o The Central Bank of Kenya reduced its benchmark rate by 25 bps to 9% in December 2025, marking the ninth consecutive cut. Governor Kamau Thugge said the move aims to boost lending, support economic activity, and maintain stable inflation expectations and exchange rates. Kenya’s annual inflation eased to 4.5% in November, below the 5% midpoint of the central bank’s target band for over a year, supported by lower processed food prices, stable energy costs, and exchange rate stability.
Sources: Bloomberg, Reuters, Trading Economics
