In this week’s edition:
· U.S. Equities Advanced, Supported by Progress in Middle East Peace Talks and a Strong Corporate Earnings Season.
· Gold Prices Fell 0.68% W/W, As Elevated Oil Prices Heightened Inflation Concerns and Strengthened Expectations of a U.S. Rate Hike this Year.
· Ghana’s Treasury Auction Returns to Undersubscription (12.30%) as Yields Remain Broadly Stable.
· GSE Rebounds on ZEN and MTNGH Gains Despite Continued Weakness in Financials; GSE-CI Up 1.39% w/w to 65.55% YTD, While GSE‑FI Slipped 2.33%% W/W to 69.50% YTD.
Kindly click to view the full report: Global Markets Update - May 25, 2026
AROUND THE GLOBE
· U.S. Manufacturing Expansion Accelerates to Highest Since 2022
o US manufacturing activity strengthened further in May 2026, with the S&P Global Manufacturing PMI rising to 55.3 from 54.5, beating expectations of 53.8 and marking the strongest expansion since May 2022. Output growth accelerated to a four‑year high, while employment rose at its fastest pace since June 2025, even as new orders growth moderated slightly but remained among the strongest in recent years, partly driven by precautionary inventory building amid Middle East tensions.
· Euro Area Inflation Confirmed at 2023 High
o Euro area annual inflation was confirmed at 3.0% in April 2026, the highest since September 2023 and well above the ECB’s 2.0% target, driven primarily by a 10.8% surge in energy prices, the sharpest since February 2023. Price pressures also picked up in non‑energy industrial goods (0.8% vs 0.5%) and unprocessed food (4.6% vs 4.2%), while services (3.0% vs 3.3%) and processed food (1.6% vs 1.7%) recorded slower growth, leading to a modest easing in core inflation to 2.2% from 2.3%. Among major economies, inflation accelerated in Germany (2.9% vs 2.8%), France (2.5% vs 2.0%), Italy (2.8% vs 1.6%), and Spain (3.5% vs 3.4%), but edged lower in the Netherlands (2.5% vs 2.6%).
· UK Inflation Falls to One‑Year Low in April
o UK annual inflation slowed to 2.8% in April 2026, down from 3.3% in March and below expectations of 3.0%, marking its lowest level since March 2025. The decline was largely driven by a sharp moderation in housing and utility costs (1.4% vs 5.3%), alongside softer increases in transport (4.5% vs 4.7%), food (3.0% vs 3.7%), health (2.4% vs 3.1%), and recreation (1.7% vs 2.8%), although fuel prices surged by 23.0%. Meanwhile, prices picked up for clothing (0.7% vs ‑0.8%) and household goods (0.5% vs ‑0.4%), while on a monthly basis CPI rose by 0.7%, unchanged from March.
· UK Manufacturing Growth Holds at Multi‑Year High
o UK manufacturing activity remained robust in May 2026, with the S&P Global Manufacturing PMI holding steady at 53.7, unchanged from April and above expectations of 53.0, matching its highest level since May 2022. Stronger output, which rose to a three‑month high, was supported by sustained demand, including client pre‑purchasing and stock‑building, as well as increased activity linked to data centre expansion. However, employment continued to decline, while cost pressures remained elevated and supply chains faced further disruptions, even as inventory accumulation accelerated to its fastest pace since July 2022 and business confidence improved slightly.
· Eurozone Manufacturing Growth Slows in May
o Eurozone manufacturing activity moderated in May 2026, with the S&P Global Manufacturing PMI falling to 51.4 from 52.2 in April, below expectations of 51.8, marking the softest expansion in three months. The slowdown reflected weaker new orders as earlier demand tied to stock‑building and pre‑emptive buying amid Middle East tensions began to fade, while manufacturing employment declined and output growth remained modest, extending its expansion to five months. Meanwhile, input costs and output prices rose sharply, even as purchasing activity increased for a third straight month and business sentiment improved slightly.
· China Fiscal Spending Rises Modestly as Policy Support Accelerates
o China’s fiscal spending increased by 1.3% y/y to CNY 9.48 trillion in January–April 2026, with execution reaching 31.6% of the annual budget, the fastest pace for the period in five years, signaling front‑loaded policy support. Central government spending rose by 5.1%, outpacing a 0.7% increase in local spending, while fiscal revenue growth accelerated to 3.5% from 1.1% in Q1, supported by stronger tax receipts. Tax revenue climbed by 3.9% y/y, while non‑tax revenue rose by 1.6%, reflecting improving fiscal inflows alongside targeted stimulus efforts.
GHANA
· Ghana Pauses Easing Cycle, Holds Policy Rate at 14%
o The Bank of Ghana kept its benchmark interest rate unchanged at 14% in May 2026, pausing after five consecutive rate cuts as policymakers adopted a cautious stance to anchor inflation expectations while supporting growth. The decision comes amid rising external risks, with Governor Johnson Asiama noting that the Middle East conflict has heightened inflationary pressures and policy uncertainty. Although inflation edged up to 3.4% in April from 3.2%, it remains relatively contained, allowing the central bank to balance stability and economic support.
· Ghana Banking Sector Nears Full Recovery – IMF
o The IMF has indicated that Ghana’s banking sector is close to full recovery following the disruptions caused by the domestic debt restructuring, with most institutions now meeting required capital adequacy standards after a successful recapitalisation effort. While a few banks remain under resolution or undergoing final stabilisation measures, authorities are expected to complete reforms by the end of the IMF programme. The Fund noted that these efforts have significantly strengthened financial system resilience, positioning the sector for greater stability and renewed confidence in the post‑programme phase.
AFRICA
· Egypt Central Bank Holds Rates Steady Amid Inflation Risks
o The Central Bank of Egypt maintained its benchmark interest rate at 19% in May 2026, in line with expectations, following a pickup in inflation, with headline inflation rising to 13.4% from 11.9% and core inflation accelerating to 12.7% from 11.2%. Policymakers warned that higher global energy and food prices, exchange‑rate volatility, and fiscal adjustments could slow disinflation and pose risks to the Q4 2026 inflation target. Meanwhile, the growth outlook was revised down, with FY2025/26 GDP growth forecast lowered to 4.9% from 5.1%, amid weaker external demand and ongoing geopolitical tensions.
· Nigeria Holds Policy Rate Steady Amid Renewed Inflation Pressures
o Nigeria’s central bank maintained its benchmark interest rate at 26.50% in May 2026, following a 50 bps hike in February, as policymakers adopted a cautious stance amid rising inflation and heightened global uncertainty. Governor Olayemi Cardoso emphasized the need for vigilance to anchor inflation expectations, with headline inflation rising to 15.7% in April from 15.4%, marking a second consecutive increase after a prolonged period of disinflation. The bank also kept key policy parameters unchanged, including the asymmetric corridor (+50/-450 bps), cash reserve ratio (45% for commercial banks, 16% for merchant banks), and liquidity ratio (30%), reinforcing its commitment to macroeconomic stability.
· South Africa Inflation Climbs to Over 18-month High in April
o South Africa’s annual inflation rate rose to 4.0% in April 2026, up from 3.1% in March and slightly above expectations of 3.9%, marking the highest level since August 2024. The increase was driven mainly by higher housing and utilities costs (5.2% vs 5.1%) and a sharp rebound in transport inflation (4.9% vs -1.6%) following fuel price hikes, although food inflation eased to 2.9% from 3.6% and price growth slowed in restaurants and hotels (5.2% vs 5.9%). Core inflation also picked up to 3.6% from 3.2%, while on a monthly basis CPI rose by 1.1%, accelerating from 0.6%, marking the strongest increase since July 2022.
Sources: Bloomberg, Reuters, Trading Economics
