In this week’s edition:
· U.S. Stocks Closed at Record Highs, As Investors Assessed the Sustainability of the AI Rally Alongside Middle East Oil Supply Risks and Inflation Implications.
· Gold Prices Rose 0.68% W/W, Supported by Reports That the U.S. and Iran May Extend Their Ceasefire.
· Ghana’s Treasury Records Second Consecutive Undersubscription as Yields Rise Across the Curve.
· GSE Extends Decline as Broad-Based Pullbacks Persist Across Key Counters; GSE-CI Down 1.14% W/W to 63.67% YTD, While GSE‑FI Dropped 0.35% W/W to 68.99% YTD.
Kindly click to view the full report: Global Market Updates - June 1, 2026
AROUND THE GLOBE
· U.S. Q1 GDP Growth Revised Lower
o U.S. economic growth was revised down to an annualized 1.6% in Q1 2026, from an initial estimate of 2.0%, though still up from 0.5% in Q4 2025, reflecting downward revisions to consumer spending and investment. Consumer spending rose by 1.4% (vs 1.6%), driven mainly by services, while private investment increased by 7.0% (vs 8.7%), with strong gains in equipment and intellectual property offset by declines in structures and residential investment. Meanwhile, net trade weighed on growth (-1.25pp) as imports (21.1%) outpaced exports (13.1%), while government spending rose by 4.4%, unchanged from the earlier estimate.
· Euro Area Unemployment Rate Edges Above Expectations
o The Euro area unemployment rate stood at 6.3% in April 2026, unchanged from March but slightly above expectations of 6.2%, despite a decline in the number of unemployed by 84,000 to 11.08 million. Youth unemployment improved to 14.7% from 15.1%, while disparities across major economies persisted, with Spain (10.3%), France (8.2%), and Italy (5.1%) recording higher rates compared to Germany (3.8%) and the Netherlands (3.9%). The jobless rate was unchanged from a year earlier, while the broader EU unemployment rate held at 6.0%.
· Japan Manufacturing Growth Confirmed at Slower Pace
o Japan’s manufacturing activity was confirmed at a PMI of 54.5 in May 2026, unchanged from the preliminary estimate but down from 55.1 in April, signalling a moderation from the strongest reading since January 2022. Output continued to expand, supported in part by stockpiling efforts amid Middle East‑related supply disruptions, while new order growth eased slightly despite export demand rising at the fastest pace in five years.
· China Composite PMI Edges Higher as Overall Activity Expands
o China’s National Bureau Statistics Composite PMI rose to 50.5 in May 2026, up from 50.1 in April, marking a third consecutive month of expansion in overall business activity. The improvement was driven by a modest rebound in the services sector, while manufacturing remained broadly stable, although external headwinds continued to weigh on momentum. Elevated energy costs and supply disruptions linked to the Middle East conflict, alongside lingering trade uncertainty with the US, continued to pressure margins and dampen business confidence.
GHANA
· Ghana Reserves Hit Multi‑Year High
o Ghana’s gross international reserves climbed to a year‑plus high in May, reflecting improved external balances, yet the cedi continues to face sustained pressure from elevated dollar demand, dividend repatriation, and rising oil prices. Bank of Ghana data show reserves increasing to $14.4 billion as of May 18, 2026, up from US$13.8 billion at end‑2025, equivalent to 5.7 months of import cover, alongside a widening current account surplus to US$3.10 billion from US$2.43 billion a year earlier. Governor Dr. Johnson Asiama attributed the currency weakness to strong FX demand from the energy sector and seasonal corporate outflows, noting that the central bank continues to provide liquidity through regular auctions without resorting to aggressive intervention.
AFRICA
· South Africa Raises Policy Rate by 25bps Amid Rising Inflation Risks
o The South African Reserve Bank increased its benchmark repo rate by 25 basis points to 7% on May 28, 2026, in line with expectations, marking the first rate hike since May 2023 (50 bps). The decision saw four of the six Monetary Policy Committee members vote in favor, while two preferred to maintain the current rate. The central bank cited heightened inflation risks linked to the Middle East conflict and warned that overlapping shocks could lead to second-round effects, warranting tighter monetary policy to keep inflation within target.
· Kenya Inflation Climbs to Near 2½‑Year High
o Kenya’s annual inflation rate accelerated to 6.7% in May 2026, up from 5.6% in April and marking the highest level since January 2024. The increase was driven largely by a sharp rise in transport costs (16.5% vs 10.0%) following fuel price hikes linked to higher global energy prices amid geopolitical tensions. Additional upward pressure came from food inflation (9.4% vs 8.8%) and housing and utility costs (3.4% vs 2.4%), reflecting broadening price pressures.
· Nigeria Private Sector Activity Climbs to Nine‑Month High
o Nigeria’s private‑sector activity strengthened in May 2026, with the Stanbic IBTC Bank PMI rising to 54.1 from 52.4 in April, marking the strongest growth since August 2025. The expansion was driven by faster increases in output and new orders, prompting firms to scale up purchasing and inventory levels, while supplier performance improved and employment continued to rise modestly. Although input and output price pressures remained elevated due to higher fuel costs, inflation eased to multi‑month lows, while business confidence stayed positive despite slipping to a one‑year low amid ongoing cost pressures and uncertainty.
Sources: Bloomberg, Reuters, Trading Economics
