In this week's edition:
· Tech-Led Selloff Sends U.S. Stocks Sharply Lower, as a Steep Decline in Semiconductor Shares Weighed on Investor Sentiment.
· Gold Prices Fell 4.63% W/W, as a Stronger-than-Expected U.S. Jobs Report and Ongoing Middle East Tensions Fuelled Inflation and Interest Rate Concerns.
· Ghana’s Treasury Auction Records 7.16% Oversubscription as Long-End Yields Rise Sharply.
· GSE Extends Losing Streak as Selling Pressure Persists; GSE-CI Down 0.38% w/w to 63.04% YTD; Meanwhile, GSE‑FI Rose 0.74% W/W to 70.24% YTD.
Kindly click to view the full report: Global Market Update - June 08, 2026
AROUND THE GLOBE
- U.S. Unemployment Holds Steady in May
o The U.S. unemployment rate remained unchanged at 4.3% in May 2026, in line with expectations, while labour market conditions showed modest improvement. The number of unemployed fell by 66,000 to 7.31 million, as total employment rose by 149,000, alongside a 83,000 increase in the labour force, with the participation rate holding at 61.8%. The employment‑to‑population ratio edged up to 59.2% from 59.1%, while the broader U‑6 unemployment rate eased to 8.1% from 8.2%, indicating slightly reduced labour market slack.
- Eurozone GDP Growth Revised Sharply Lower in Q1
o Eurozone GDP growth was revised down to 0.3% y/y in Q1 2026, from an earlier estimate of 0.8%, marking the weakest expansion since Q4 2023 amid energy and inflation pressures. The data reflected a sharp slowdown in investment (0.3% inQ1 2026 vs 3.3% in Q4 2025), a contraction in exports (-0.9% vs 2.1%), and softer consumer spending (1.1% vs 1.3%), partly offset by stronger government expenditure (2.3% vs 1.5%). At the country level, Ireland contracted sharply (-16.8% vs 2.9%), while growth slowed across major economies, although Spain remained resilient (2.7% vs 2.6%), with quarterly GDP declining by 0.2% q/q, the first contraction since 2022.
- Euro Area Private Sector Contracts for Second Straight Month
o Euro area private‑sector activity continued to weaken in May 2026, with the S&P Global Composite PMI revised up to 48.5 from 47.5, but still below April’s headline number (48.8), marking the fastest contraction in 18 months and a second consecutive month of decline. The downturn was driven by services (47.7 in May vs 47.6 in April), while manufacturing remained in expansion (51.6 in May vs 52.2 in April), as overall demand softened, particularly from export markets, where new orders fell at the fastest pace in five months. Labour market conditions also weakened with rising job losses, while input costs remained elevated and output price inflation accelerated for a third consecutive month, although business confidence showed a modest improvement.
- China FX Reserves Rise to Highest Since 2015
o China’s foreign exchange reserves increased by USD 31.7 billion to USD 3.442 trillion in May 2026, up from USD 3.411 trillion in April, reaching their highest level since October 2015. The gains came alongside currency movements, with the yuan appreciating by 0.95% against the US Dollar even as the Dollar strengthened by 0.85% against a basket of major currencies. Meanwhile, the People’s Bank of China extended its gold‑buying streak to 19 consecutive months, with holdings rising to 74.96 million ounces, although their value declined slightly to USD 340.07 billion from USD 344.17 billion.
- GHANA
- Ghana Inflation Rises to Four‑Month High in May
o Ghana’s annual inflation rate increased to 3.7% in May 2026, up from 3.4% in April, marking the highest level since January and extending the recent upward trend. The rise was driven mainly by a sharp pickup in food inflation (3.3% in May vs 2.2% in April), reflecting higher energy and fertilizer costs linked to the Middle East conflict, alongside climate‑related pressures on agricultural output. Meanwhile, non‑food inflation edged down to 4.1% from 4.2%, while on a monthly basis, CPI rose by 1.1%, slightly above the 1.0% increase recorded in April.
- AFRICA
- Egypt Non‑Oil Private Sector Contraction Eases
o Egypt’s non‑oil private sector showed signs of stabilization in May 2026, with the S&P Global PMI rising to 47.1 from 46.6 in April, indicating a slower pace of contraction. Activity improved across manufacturing and construction, supported by a sharp build‑up in inventories, the fastest in nearly three years—although input cost pressures intensified to the highest level since January 2023, driven by higher fuel, electricity, and wage costs alongside currency weakness. Despite rising costs and worsening supply chain conditions, with delivery delays at a near four‑year high, firms cut employment at the fastest rate since June 2020, even as business confidence improved to its strongest level since August 2024.
- South Africa Private Sector Activity Slips to Five‑Month Low
o South Africa’s private‑sector activity weakened in May 2026, with the S&P Global PMI falling to 49.6 from 51.6 in April, dropping below the 50.0 threshold for the first time in five months. The decline was driven by renewed contractions in output and new orders, particularly in wholesale and retail, although the services sector remained in expansion. Cost pressures intensified, with input price inflation rising to its highest level since July 2022, pushing selling prices to a 46‑month high, even as firms continued to increase hiring at the fastest pace since September 2022.
- South Africa FX Reserves Decline Further in May
o South Africa’s gross foreign exchange reserves fell to USD 76.58 billion in May 2026, down from USD 77.09 billion in April, remaining at their lowest level since December 2025. The decline was driven mainly by a reduction in the US dollar value of gold holdings (USD 18.27 billion vs USD 18.70 billion) and lower foreign currency reserves (USD 51.66 billion vs USD51.73 billion), alongside government‑related FX outflows. Meanwhile, SDR holdings dipped slightly to USD 6.65 billion from USD 6.66 billion, and the forward position edged down to USD0.58 billion, indicating modest adjustments across reserve components.
Sources: Bloomberg, Reuters, Trading Economics
