In this week's edition:
· U.S. Stocks Closed Lower Last Week, Amid Concerns over AI valuations and health of the US economy.
· Gold Prices Dropped by 0.04% to Record the Third Consecutive Week of Decline Despite Renewed Expectations of Fed Rate Cut.
· Ghana’s Treasury Auction was Undersubscribed by 34.19% as Interest Rates Inched Higher.
· Ghanaian Equities Market Closed the Week in Negative Territory, Dragged Down By Heavily Weighted MTNGH.
Kindly click to view the full report: Global Market Update - November 10, 2025
AROUND THE GLOBE
· China Consumer Prices Post Surprise Increase
o China’s consumer prices rose by 0.2% year-on-year in October, surprising forecasts of no change and rebounding from a 0.3% decline in September. The gain, China’s first inflation uptick since June, was driven by stronger non-food inflation and holiday-related spending during Golden Week. Food prices fell at a slower pace, and core inflation rose to 1.2%, the highest in 20 months.
· US Inflation Expectations Ease in October
o US one-year inflation expectations slipped to 3.2% in October from 3.4%, while the three- and five-year outlooks held steady at 3.0%. Home price expectations remained unchanged at 3.0%. Consumers now expect lower price increases for gas (3.5%) and food (5.7%). However, expectations rose for major expenses: college costs (+8.2%), medical care (+9.4%), and rent (+7.2%).
· Bank of England Holds Rate at 4%
o At its 5 November meeting, the Bank of England’s Monetary Policy Committee (MPC) voted 5–4 to maintain the Bank Rate at 4%, aligning with market expectations. Policymakers observed that Consumer Price Index (CPI) inflation has peaked and underlying disinflation is underway. This trend is being supported by a still-restrictive policy stance, slower wage growth, and easing inflation in the services sector. The MPC noted that risks to achieving the 2% inflation target are now more evenly balanced. Given that previous rate cuts have already reduced the restrictiveness of monetary policy, future rate reductions will depend on incoming economic data.
· Eurozone Business Activity Hits Fastest Pace Since 2023
o The Eurozone Composite PMI rose to 52.5 in October, the strongest expansion since May 2023. Growth was driven by a sharp pickup in services while manufacturing edged up slightly. New business increased at the fastest rate in over two years, and employment reached a 16-month high. Input cost pressures eased, though businesses raised selling prices at the quickest pace in seven months.
· China Producer Prices Decline at Slowest Pace in Over a Year
o China’s producer prices fell 2.1% year-on-year in October, easing from a 2.3% drop in September and marking the mildest decline in 14 months. The slowdown—slightly better than expectations—signals some relief from prolonged factory-gate deflation. Consumer goods prices fell at a slower pace, while production material costs remained weak. On a monthly basis, producer prices edged up 0.1%, hinting at tentative stabilization.
- GHANA
· Ghana Inflation Drops to 8%, Hits Mid-Point of Central Bank Target Range
o Ghana’s inflation slowed to 8% in October, down from 9.4% in September—its lowest level in over four years and staying within the Bank of Ghana’s target band of 6–10% for the second consecutive month. The decline was helped by a stronger Cedi, up nearly 35% this year on higher cocoa and gold prices. Food inflation eased to 9.5%, while non-food inflation fell to 6.9%. Month-on-month, consumer prices declined by 0.4%.
· S&P Upgrades Ghana’s Credit Rating to B‑
o S&P has upgraded Ghana’s long-term foreign and local currency debt to B‑ from CCC+, with a stable outlook. The move reflects stronger exports of gold and cocoa, a rising cedi, and foreign reserves reaching nearly $11 billion. Inflation is expected to remain below 10% in 2026, while fiscal reforms aim to strengthen budget discipline.
- AFRICA
· Egypt Inflation Hits 3-Month High of 12.5%
o Egypt’s annual urban inflation rose to 12.5% in October 2025, up from 11.7% in September and above the 12.0% forecast, marking the highest level since July. The increase was driven by rising fuel prices, following a nearly 13% government hike on October 17, while food inflation edged up to 1.5%. On a monthly basis, the CPI rose 1.8%, matching September’s pace and the fastest in four months.
· South Africa Forex Reserves Hit Record USD 71.55B
o South Africa’s gross foreign exchange reserves rose to a record USD71.55 billion in October 2025, up from USD69.74 billion in September. Foreign currency reserves increased to USD48.84 billion and gold reserves to USD16.21 billion. SDR holdings declined slightly to USD6.50 billion, while the forward position fell to USD0.60 billion from USD1.18 billion.
Sources: Bloomberg, Reuters, Trading Economics
