In this week's edition:
· U.S. Equities Advanced, Supported by Strong Investor Sentiment Following SpaceX’s Market Debut and Optimism Over the U.S.-Iran peace deal.
· Gold Prices Fell 2.52% W/W, as Improving Geopolitical Sentiment Reduced Demand for Safe-Haven Assets.
· Ghana’s Treasury Records Second Consecutive Oversubscription (11.70%) as Yields Rise at the Short and Long Ends.
· Financial Stocks Fuel Market Rebound; GSE-CI Up 1.00% w/w to 64.67% YTD, While GSE‑FI Rose 4.00% W/W to 77.05% YTD.
Kindly click to view the full report: Global Market Update - March 15, 2026
AROUND THE GLOBE
- U.S. Inflation Climbs to Fresh 2023 High
o U.S. headline inflation accelerated to 4.2% y/y in May 2026, up from 3.8% in April 2026 and in line with expectations, marking its highest level since April 2023 and the third consecutive monthly increase. The rise was driven primarily by a surge in energy prices (+23.5% vs 17.9% in April 2026), including sharp gains in gasoline (40.5% vs 28.4% in April 2026) and fuel oil (58.9% vs 54.3% in April 2026), alongside stronger inflation in shelter (3.4% vs 3.3% in April 2026) and food (3.1% vs 2.3% in April 2026). On a monthly basis, CPI rose 0.5%, easing slightly from 0.6% in April, while core inflation edged up to 2.9% from 2.8%, although core monthly prices slowed to 0.2% from 0.4%, coming in below the 0.3% forecast.
- U.S. Producer Prices Accelerate While Core PPI Trails Expectations
o U.S. producer prices rose by 1.1% m/m in May 2026, unchanged from a revised 1.1% increase in April and above forecasts of 0.7%, driven largely by a 2.8% surge in goods prices, including a sharp 23.4% jump in gasoline. In contrast, services inflation slowed to 0.3% from 0.7%, even as gains in portfolio management were partially offset by declining margins in wholesale and retail segments. On an annual basis, PPI accelerated to 6.5% from 6.4%, the highest since November 2022, while core PPI rose by 0.4% m/m and 4.9% y/y, both below expectations, indicating some easing in underlying price pressures.
- U.S. Trade Deficit Narrows as Exports Reach Record High
o The U.S. trade deficit narrowed to $55.9 billion in April 2026, from a revised $56.6 billion in March, outperforming expectations of $56.1 billion. Exports rose by 2.6% to a record $327.1 billion, driven by strong gains in capital goods (+$4.0 billion), industrial supplies (+$2.5 billion), notably crude oil and petroleum products and consumer goods (+$1.7 billion), although services exports dipped slightly. Meanwhile, imports increased by 2.0% to $383.0 billion, the highest in a year, largely due to higher capital goods imports (+$7.0 billion), alongside modest gains in services, reflecting continued strong domestic demand.
- ECB Raises Rates for First Time Since 2023
o The European Central Bank (ECB) increased interest rates by 25 basis points in June 2026, marking its first hike since 2023, as policymakers moved to reinforce their commitment to the 2% inflation target amid rising price pressures. The decision reflects concerns over elevated energy costs and persistent inflation risks linked to the Iran conflict and disruptions to global oil supply routes. The ECB revised its inflation forecasts upward, projecting 3.0% in 2026 (from 2.6%) and 2.3% in 2027 (from 2.0%), while core inflation was also raised, even as growth projections were slightly lowered to 0.8% for 2026 and 1.2% for 2027, highlighting a more challenging economic outlook.
- UK Economy Contracts Slightly in April
o The UK economy contracted by 0.1% m/m in April 2026, in line with expectations, reversing a 0.3% expansion in March and marking the first decline since August 2025. The downturn was driven by a 0.2% drop in services output, led by weakness in administrative activities (-2.2%), arts and recreation (-4.3%), and wholesale and retail trade (-0.4%), although information and communication rose by 1.1%. Meanwhile, production remained flat after a 0.2% decline, and construction grew modestly by 0.1%, while on an annual basis GDP expanded by 1.2%, slightly below the 1.3% forecast.
- China Inflation Holds Steady in May
o China’s annual inflation rate remained unchanged at 1.2% y/y in May 2026, slightly below expectations of 1.3%, as rising non‑food prices offset continued food‑price weakness. Non‑food inflation edged up to 1.9% from 1.8%, driven by higher transport costs (5.4% vs 4.6% in April 2026), while food prices declined further to -1.7% from -1.6% m/m, marking a second consecutive drop. Meanwhile, core inflation eased to 1.1% from 1.2%, and on a monthly basis, CPI fell 0.1%, reversing a 0.3% increase but outperforming forecasts for a 0.2% decline.
- GHANA
- Ghana GDP Growth Accelerates in Q1 2026
o Ghana’s economy expanded by 6.4% y/y in Q1 2026, up from 5.8% in Q4 2025 and marking the fastest growth since Q2 2025, driven largely by stronger non‑oil sector activity. The services sector grew by 7.1%, contributing 48.3% of total growth, led by information and communication (25.2%), alongside solid gains in transport (13%) and trade (9%), while the industrial sector rose by 6.9%, supported by mining (10.7%) and oil and gas (7.0%). Meanwhile, agriculture expanded 4.0%, and on a quarterly basis, GDP increased 1.6%, reflecting improving economic momentum.
- AFRICA
- Egypt Inflation Slows to Three‑Month Low in May
o Egypt’s annual urban inflation eased to 14.6% in May 2026, down from 14.9% in April and slightly above expectations of 14.5%, marking the lowest level since February. The moderation was driven by a sharp slowdown in transport inflation (24.7% vs 29.2% in April 2026), alongside easing pressures in health, restaurants and recreation, although housing and utility costs accelerated to 40.4% from 38.5%. Meanwhile, food inflation rose to 7.6% from 6.7% m/m, and on a monthly basis, CPI increased 1.6%, up from 1.1%, indicating persistent underlying pressures.
- Kenya Holds Policy Rate Steady for Second Consecutive Meeting
o The Central Bank of Kenya left its benchmark interest rate unchanged at 8.75% in June 2026, marking a second consecutive hold as policymakers aim to anchor inflation expectations and support exchange rate stability. Inflation rose for a third straight month to 6.7% in May, the highest since January 2024, driven by higher energy costs but remaining within the 5±2.5% target band. The bank expects inflation to stay within target, supported by policy measures, government interventions, stable food prices, and exchange rate stability, even as growth is projected at 4.9%, down from 5.3%, reflecting ongoing geopolitical and trade uncertainties.
- South Africa GDP Growth Surpasses Expectations in Q1
o South Africa’s economy expanded by 0.5% q/q in Q1 2026, up from 0.4% in Q4 2025 and above forecasts of 0.3%, marking the sixth consecutive quarter of growth and the strongest performance since Q2 2025. The expansion was broad‑based, with nine of ten sectors growing, led by finance (0.9%), agriculture (3.9%), trade (0.7%), and transport (0.7%), although manufacturing contracted (-0.8%). Growth was supported by net exports (+0.9pp) as imports declined, while household consumption (0.1%) and government spending (0.6%) provided modest support, even as investment fell (-1.1%). On an annual basis, GDP rose by 1.9%, accelerating from 0.8% and slightly exceeding expectations of 1.8%.
Sources: Bloomberg, Reuters, Trading Economics
