In this week's edition:
· U.S. stocks Posted Mixed Performance Last Week, With Early-Week Losses Limiting Overall Gains
· Gold Marks Second Consecutive Week of Gains, Rising by 0.91% Driven by Softer-Than-Expected US Inflation Data
· Ghana’s Treasury Records 41.94% Oversubscription as Yields Ease Further
· Ghana Stock Exchange Welcomes FAB Listing Amid Continued Rally: GSE-CI Up 0.88% w/w to 79.10% YTD as Financial Stocks Lead Market Gains
Kindly click to view the full report: Global Market Update - December 22, 2025
AROUND THE GLOBE
· US Core Inflation Falls to 2.6%, Lowest Since 2021
o US core consumer price inflation eased to 2.6% year-on-year in November 2025, the lowest reading since March 2021 and below market expectations of 3%. The moderation reflects easing underlying price pressures, although shelter costs still rose by 3.0% over the year. Notable increases were also recorded in medical care, household furnishings, recreation, and used vehicles. October inflation data were unavailable due to the prolonged government shutdown, limiting monthly inflation comparisons.
· UK Q3 GDP Growth Holds at 0.1%
o The UK economy grew by 0.1% quarter-on-quarter in Q3 2025, confirming preliminary estimates and slowing from 0.3% in Q2. Output was dragged by a 0.3% fall in production, led by manufacturing, while services rose by 0.2% and construction edged up 0.2%. On the demand side, household spending (+0.3%), government expenditure (+0.4%), and a 1.5% rebound in business investment provided modest support. Year-on-year growth eased slightly to 1.3%.
· ECB Holds Rates Steady, Signals Data-Dependent Approach
o The European Central Bank (ECB) kept borrowing costs unchanged in December 2025, with the main refinancing rate at 2.15% and the deposit facility rate at 2.0%, marking the fourth consecutive meeting without a change. President Lagarde emphasized a meeting-by-meeting, data-driven approach and confirmed no discussion of hikes or cuts. Updated projections show GDP growth of 1.4% in 2025, moderating slightly in 2026–2027, while headline inflation averages 2.1% in 2025 and is expected to remain near target through 2028.
· Bank of England Cuts Rate to 3.75% Amid Easing Inflation
o The Bank of England reduced its Bank Rate by 25bps to 3.75%, the lowest since 2022, citing slowing inflation and signs of economic strain. Five MPC members supported the cut, while four preferred holding rates, limiting expectations for further easing. UK inflation slowed to 3.2% in November, below forecasts, as GDP contracted for a second month in October and wage growth softened. Policymakers emphasized that future decisions would depend on developments in the inflation outlook.
· Bank of Japan Hikes Rate to 0.75%, Highest Since 1995
o The Bank of Japan raised its key short-term rate by 25bps to 0.75% in December, the highest level since September 1995, marking its second hike this year. The move signals a gradual shift from ultra-loose monetary policy. The BoJ expects steady wage growth in 2026 amid stronger corporate profits, while noting that real rates remain negative and financial conditions are accommodative. Core inflation is projected to stay below 2% in early FY2026 before gradually rising.
· China FDI Decline Eases Amid November Surge
o Foreign Direct Investment (FDI) into China fell by 7.5% year-on-year to CNY 693.18 billion in the first eleven months of 2025, marking the slowest contraction since August 2023. November saw a sharp rebound, with utilized FDI up by 26.1% year-on-year. Manufacturing attracted CNY 171.72 billion, services CNY 506.29 billion, and technology sectors CNY 221.26 billion, including e-commerce, medical instruments, and aerospace. Switzerland (+67%), the UAE (+47.6%), and the UK (+19.3%) led FDI growth by origin.
- GHANA
· IMF Disburses $385 Million to Ghana Following Reform Progress
o The IMF released $385 million to Ghana under its three-year $3 billion program, bringing total disbursements to $2.8 billion since May 2023. The move reflects the authorities’ progress on economic reforms and reinforces investor confidence in fiscal stability. Program conditions and the government’s commitment to consolidation have helped stabilize government finances and supported a ~28% Cedi appreciation against the Dollar this year. The Cedi’s strength and subsiding inflation pressures have enabled the Bank of Ghana to ease monetary policy this year. The IMF highlighted progress on debt restructuring, fiscal consolidation, and macroeconomic stabilization, projecting inflation to fall to 7.9% in 2026.
- AFRICA
· South Africa Inflation Eases to 3.5% in November
o South Africa’s annual inflation rate cooled to 3.5% in November 2025, slightly below expectations, from 3.6% in October. Price growth slowed in five categories, notably transport (0.7%) and recreation, sport & culture (2.9%), while food & non-alcoholic beverages rose to 4.4%, driven by higher meat prices amid foot-and-mouth disease outbreaks. Restaurants & accommodation and alcoholic beverages & tobacco also increased. Core inflation inched up to 3.2%, while the CPI fell by 0.1% month-on-month.
· Nigeria Plans Record 2026 Budget Amid Wider Deficit
o President Bola Tinubu unveiled Nigeria’s 2026 budget, proposing N58 trillion in spending against projected revenue of N34 trillion, resulting in a N24 trillion deficit (4.3% of GDP), wider than this year’s 3.9% shortfall. Revenue is constrained by lower oil price assumptions and output forecasts. The government will prioritize defense, infrastructure, education, and health, aiming for 4.7% economic growth. Analysts warn that subdued revenue and implementation risks could strain public finances, though debt levels remain manageable.
· Sources: Bloomberg, Reuters, Trading Economics
