In this week's edition:
· U.S. Stocks Closed at Record Highs Last Week, Driven by Softer-Than-Expected Inflation Data and Hopes of Rate Cuts Later This Year
· Gold Prices Dropped by 3.26 w/w as Weaker U.S. CPI Data Boosted Expectations of Lower Interest Rates, Reducing Demand for the Safe-Haven Asset
· Ghana’s Treasury Auction Undersubscribed by 24.88% Amid Mixed Yield Movements Although All Bids were Accepted
· Heavyweight MTNGH Drags the Ghana Stock Market Lower to Snap a Six-Week Winning Streak as GSE-CI Slips 1.52% w/w; YTD Gains Ease to 71.16%
Kindly click to view the full report: Global Market Update - October 27, 2025
AROUND THE GLOBE
· US Inflation Eases Slightly Below Expectations
o The annual inflation rate in the US rose to 3.0% in September 2025 from 2.9% in August, below forecasts of 3.1% and marking the highest reading since January. Energy prices climbed by 2.8%, the most since May 2024, led by fuel oil and gasoline, while food and transportation costs rose more slowly. Core inflation eased to 3.0% from 3.1%. On a monthly basis, headline CPI rose by 0.3% and core CPI increased by 0.2%, both below expectations.
· UK Inflation Holds Steady at 3.8% in September
o The UK’s annual inflation rate stayed unchanged at 3.8% in September 2025, below market expectations of 4%. Higher transport and hospitality costs offset slower price growth in food, recreation, and housing. Core inflation eased slightly to 3.5% from 3.6%, while monthly CPI was flat. The data suggests inflationary pressures remain contained, supporting expectations that the Bank of England could maintain a cautious policy stance in the coming months.
· US Manufacturing PMI Rises to 10-Month High
o The S&P Global US Manufacturing PMI increased to 52.2 in October 2025 from 52.0 in September, slightly above expectations. The reading marked the ninth expansion in ten months and the strongest since December 2024, driven by faster output growth and the sharpest rise in new orders in 20 months. However, employment growth softened to a three-month low, and inventories expanded only slightly, while supplier delivery times improved modestly.
· Euro Area Manufacturing Activity Stabilizes in October
o The HCOB Eurozone Manufacturing PMI rose to 50.0 in October 2025 from 49.8 in September, beating expectations of 49.5 and signaling a stabilization in factory activity. Output expanded for an eighth straight month, while new orders steadied after prior declines. However, employment fell at the fastest pace in four months, and business confidence softened. Input costs edged up, prompting firms to raise selling prices for the first time in six months.
· China FDI Falls 10.4% in First Nine Months of 2025
o Foreign Direct Investment (FDI) into China declined by 10.4% year-on-year to CNY 573.75 billion (USD 80.9 billion) in January–September 2025, reflecting global economic headwinds. The services sector attracted the bulk of inflows (CNY 410.93 billion), followed by manufacturing (CNY 150.09 billion). High-tech industries drew CNY 170.84 billion, led by e-commerce (+155.2%) and aerospace manufacturing (+38.7%). Notably, FDI from Japan and the UAE surged, while September alone saw an 11.2% annual rise.
- GHANA
· Ghana Seeks $200 Premium for EUDR-Compliant Cocoa
o Ghana plans to charge a $200-per-ton premium for sustainably grown and traceable cocoa as it aligns with the EU Deforestation Regulation (EUDR). According to Barnett Quaicoo, Deputy Managing Director of the Cocoa Marketing Company, the premium reflects the cost of compliance and traceability. Ghana has invested in digital systems to verify cocoa origins, and major buyers are reportedly willing to pay the surcharge to avoid EU penalties.
· Ghana Targets GH¢75.7bn in Domestic Borrowing for Q4
o The Government of Ghana plans to raise GH¢75.7 billion from the domestic market in Q4 2025. Of this, GH¢67.5 billion will refinance maturing debt, while GH¢8.2 billion will support new spending. Instruments include treasury bills and reopened bonds. The move comes amid missed auction targets and liquidity concerns, testing investor confidence and fiscal resilience as the government navigates debt servicing and economic stabilization.
- AFRICA
· South Africa Inflation Rises Slightly, Stays Within Target
o South Africa’s annual inflation rate edged up to 3.4% in September 2025 from 3.3% in August, remaining comfortably within the SARB’s 3–6% target range and slightly below market expectations of 3.5%. Price growth quickened for housing and utilities, restaurants, and miscellaneous goods, while fuel and food inflation eased. On a monthly basis, consumer prices rose by 0.2%, rebounding from a 0.1% decline in August.
· Nigerians Spend 70% of Income on Transport, Energy
o The Manufacturers Association of Nigeria (MAN) reports that rising transport and energy costs now consume over 70% of household income, slashing demand for manufactured goods. Unsold inventory surged 87.72% to ₦2.14 trillion in 2024. Real investment dropped 35.3%, while naira depreciation raised import costs. MAN also criticized low government patronage of local products, warning the trend threatens industrial growth and economic stability.
Sources: Bloomberg, Reuters, Trading Economics
