Weekly Market Update - Monday, August 3, 2026

In this week's edition:

• U.S. Stocks Closed Higher Last Week as Gains in Major Technology Stocks Lifted the Market in a Volatile Week.
• Gold Snubbed 0.16% w/w as Strong Dollar and Expectations of Tighter Monetary Policy Weaken Safe-haven Demand for the Precious Metal.
• Ghana’s Treasury Auction Oversubscribed by 47.48% as Demand Stays Skewed to the Long End Despite Mixed Yield Movements.
• Broader Market Extends Gains as GSE-CI Rises 0.68% w/w to 75.99% YTD Despite Continued Pullback in Financial Stocks. 

AROUND THE GLOBE   

• U.S GDP Growth Slows in Q2 2026
  • The U.S. economy expanded at an annualized 1.50% in Q2 2026, slowing from 2.10% in Q1 2026 and falling short of market expectations of 2.10%, according to the advance estimate from the Bureau of Economic Analysis. The moderation reflected slower growth in non-residential fixed investment (8.40% in Q2 vs. 10.60% Q1), a deeper drag from net exports (-1.01pp in Q1 vs. -0.37pp in Q2) due to weaker export growth (4.50% in Q2 vs. 10.90% in Q1), and a decline in government spending (-0.80% in Q2 vs. 4.40% in Q1). However, consumer spending accelerated sharply to 3.20% (vs. 0.50% in Q2), supported by stronger spending on vehicles, healthcare, furniture, and hospitality services, while residential investment rose 1.50%, marking its first increase in six quarters.
• Fed Holds Rates Steady, Signals Potential for Further Tightening
  • The Federal Reserve left the federal funds rate unchanged at 3.50%–3.75% on July 29, 2026, marking a fifth consecutive meeting without a rate change and aligning with market expectations. However, three FOMC members dissented in favor of a 25bp rate hike, signaling that policymakers remain concerned about inflation and leaving the door open to a possible rate increase in September. While acknowledging the economy's resilience, policymakers stressed that inflation remains above the 2.00% target, partly reflecting energy-related supply shocks, and reaffirmed their commitment to restoring price stability.
• BoE Holds Rates Steady, Warns of Upside Inflation Risks
  • The Bank of England left its Bank Rate unchanged at 3.75% on July 30, 2026, with a 6–3 vote split, as policymakers balanced easing inflation against persistent risks from higher energy prices and geopolitical uncertainty. While headline inflation slowed to 2.60%, the Bank cautioned that price pressures could re-emerge later this year as elevated energy costs feed through to households and businesses, prompting three MPC members to vote for a 25bp hike to 4.00%.
• Eurozone Inflation Rises to 2.90% in July
  • The Eurozone annual inflation accelerated to 2.90% in July 2026, up from 2.80% in June 2026 and in line with market expectations, remaining well above the ECB’s 2.0% target. The increase was driven mainly by a renewed pickup in energy inflation (10.00% vs. 8.50% in June) following the resumption of hostilities between the US and Iran, while services inflation edged higher to 3.30% (vs. 3.20% in June) and non-energy industrial goods inflation rose to 0.90% (vs. 0.70% in June). Meanwhile, food, alcohol, and tobacco inflation eased to 1.20% (vs. 1.50% in June), but core inflation increased to 2.50% (vs. 2.40% in June), signalling firmer underlying price pressures.
• Eurozone Growth Beats Expectations in Q2 2026
  • The Eurozone economy expanded by 1.00% y/y in Q2 2026, accelerating from an upwardly revised 0.50% in Q1 2026 and comfortably surpassing market expectations of 0.50%, according to preliminary estimates. Growth was supported by strong AI-related investment, resilient government spending, and temporary one-off factors, which helped offset the impact of the Iran conflict and higher energy prices. Among the bloc’s largest economies, Spain (2.70%) remained the strongest performer, followed by the Netherlands (1.30%), Italy (1.00%), Germany (0.90%), and France (0.70%). On a quarterly basis, GDP grew 0.40% q/q, accelerating from 0.2% in Q1 2026 and doubling market expectations, marking the strongest expansion since Q1 2025.

GHANA

• IMF Completes Final ECF Review, Unlocks US$371mn for Ghana
  
  
• • The IMF Executive Board has approved the final review of Ghana’s US$3.00 billion Extended Credit Facility (ECF) programme, unlocking a final disbursement of about US$371.00 million and bringing the three-year bailout arrangement to a successful conclusion. The programme, launched in 2023, supported fiscal reforms, macroeconomic stabilization, and debt sustainability efforts following Ghana’s economic crisis. Following the ECF’s completion, Ghana will transition to a 36-month Policy Coordination Instrument (PCI), a non-financing arrangement aimed at sustaining reforms, maintaining policy credibility, and consolidating recent economic gains.
• Ghana Targets GH¢16.30bn in First Cocoa Bill Sale Since Debt Default
   
  • Ghana is seeking to raise GH¢16.30 billion (about US$1.40 billion) through its first cocoa bill issuance since the country’s 2022 debt default, with the 270-day instrument expected to be offered to domestic institutional investors in early August. The proceeds will be used by COCOBOD to finance cocoa purchases from farmers during the 2026/27 crop season, marking the regulator’s largest cedi-denominated fundraising transaction to date. The issuance forms part of efforts to reduce reliance on external borrowing, with the bills to be issued through a special purpose vehicle, Cocoa Notes and Bonds Plc, listed on the Ghana Stock Exchange and supported by a sinking fund backed by cocoa export revenues to facilitate repayment and future issuances.

AFRICA

• Kenya Inflation Edges Higher in July
• Kenya’s annual inflation rate rose slightly to 6.50% in July 2026, from 6.40% in June 2026, remaining above the midpoint of the central bank’s 2.50%-7.50% target range for a third consecutive month. The increase was driven mainly by transport inflation (15.6% ), reflecting the lingering pass-through effects of earlier fuel price hikes, while food and non-alcoholic beverage inflation remained elevated at 9.0% (vs. 8.6% in June). Similarly, core inflation edged up to 3.2% (vs. 3.1% in June), signaling a modest build-up in underlying price pressures.
• South Africa Producer Inflation Eases in June
• South Africa’s producer price inflation slowed to 7.5% y/y in June 2026, down from an over three-year high of 7.8% in May 2026, as price pressures moderated across several manufacturing categories. The deceleration was driven by softer inflation in food, beverages and tobacco (1.3% vs. 2.1% in May), paper and printed products (8.5% vs. 8.7% in May), electrical machinery and communication equipment (6.2% vs. 6.9% in May), transport equipment (0.6% vs. 0.7% in May), and furniture (4.6% vs. 8.2% in May). On a monthly basis, producer prices fell 0.1%, reversing a 2.6% increase in May.

Sources: Bloomberg, Reuters, Trading Economics