Weekly Market Update - Monday, June 30, 2025

In this week's edition:

Kindly click to view the full report: Global Market Update - June 30, 2025

AROUND THE GLOBE   

·        US PCE Prices Rise Slightly in May; Core Inflation Picks Up

o   US Personal Consumption Expenditures (PCE) prices rose by 0.1% in May 2025, matching April's increase and in line with expectations. Goods and services prices rose by 0.1% and 0.2%, respectively. Core PCE inflation accelerated to 0.2%, topping forecasts. Annually, headline inflation edged up to 2.3% and core to 2.7%. The data may influence Fed policy as inflation shows signs of renewed momentum.

·        US Economy Shrinks More Than Expected in Q1 2025

o   The US economy contracted at a 0.5% annualized rate in Q1 2025, steeper than the previous 0.2% estimate and marking the first decline in three years. Consumer spending and exports were sharply downgraded, while a spike in imports ahead of tariffs added to the drag. Government spending fell, though fixed investment provided some support with a 7.6% gain.

·        China Factory Contraction Eases in June

o   China’s manufacturing PMI rose to 49.7 in June 2025 from 49.5 in May, marking a third straight contraction but the mildest in the current sequence. Output and new orders increased, supported by US trade relief and domestic stimulus. Foreign sales and buying declined more slowly, while employment fell faster. Input and selling prices dropped at a slower pace. Business sentiment dipped.

·        UK GDP Growth Holds Steady at 1.3% in Q1 2025

o   The UK economy expanded by 1.3% year-on-year in Q1 2025, in line with earlier estimates but slightly down from 1.5% in Q4. Services and construction sectors supported output, while production stagnated. On the expenditure side, household spending rose by 0.9% and business investment surged by 6.1%. However, net trade dragged, as imports jumped by 7.5% and exports fell by 0.5%.

·        Eurozone Economic Sentiment Dips in June

o   The Euro Area economic sentiment index fell to 94 in June 2025 from 94.8, missing forecasts for a rise to 95.1. Confidence declined in industry, retail, and among consumers, though services and construction saw modest gains. France, Spain, and Germany posted notable declines, while sentiment improved in Poland and was stable in Italy and the Netherlands.

  •  GHANA

·        World Bank Approves $360m for Ghana to Bolster Economic Stability

o   The World Bank has approved $360 million in support of Ghana’s efforts to restore macroeconomic stability and promote job creation. The funding, under the Second Resilient Recovery Development Policy Financing operation, aims to boost fiscal sustainability, financial sector stability, private sector development, and energy sector discipline. Finance Minister Dr. Cassiel Ato Forson welcomed the intervention.

·        BoG to Roll Out Digital Finance Rules to Boost SME Access and Innovation

o   The Bank of Ghana is set to introduce regulatory frameworks for open banking, digital credit, and digital banking by year-end to expand financial access for SMEs. Deputy Governor Dr. Zakari Mumuni said the move aims to enhance financial inclusion and innovation, leveraging technologies like blockchain and AI, while ensuring a safe and competitive digital finance space.

  • AFRICA

·        Egypt’s GDP Growth Hits 3-Year High at 4.77% in Q3 FY2024/25

o   Egypt’s economy expanded by 4.77% in Q3 of FY2024/25, the highest in three years, up from 2.2% a year earlier, according to preliminary data. Manufacturing led the rebound with 16.3% growth, while oil and gas extraction contracted by 10.38%. Activity through the Suez Canal also declined, falling by 23.1% year-on-year.

·        South African Consumer Confidence Rebounds in Q2

o   South Africa’s consumer confidence index rose to -10 in Q2 2025 from -20 in Q1, according to FirstRand’s FNB. The rebound was supported by early pension withdrawals under the two-pot system, lower fuel prices, falling interest rates, and cheaper vehicles. Despite the improvement, sentiment remains well below average, with spending growth expected to slow into 2026.

·        Nigeria’s Public Debt Rises to N149.39 Trillion in Q1 2025

o   Nigeria’s total public debt climbed to N149.39 trillion as of March 31, 2025, reflecting a 3.3% increase from N144.67 trillion in the previous quarter, according to the DMO. The Federal Government accounts for N74.89 trillion, with states and the FCT owing N3.87 trillion. Domestic debt rose to N78.76 trillion, while naira depreciation pushed external debt higher.

                  Sources: Bloomberg, Reuters, Trading Economics