In this week's edition:
· U.S. Stocks Declined Week-on-Week Amid Flight to Safe-haven Assets.
· Gold Prices Advanced to a New Record High as Investors Seek Safety Due to Escalating Conflict Between Iran and Israel.
· Ghana’s Treasury Auction Records 5% Undersubscription; Yields Decline Across all Tenors.
· GSE Records Gains After Three-week Losing Streak as Heavily Weighted MTNGH Witnessed Price Uptick.
- Kindly click to view the full report: Global Market Update - June 16, 2025
AROUND THE GLOBE
· US Core PPI Rises Less than Anticipated
o Core producer prices in the United States, which exclude food and energy, rose by 0.1% over a month in May of 2025, after a revised 0.2% fall in the prior month and below market estimates of a 0.3% increase. From the previous year, core producer prices rose 3% in May, the least since August 2024, slowing from an upwardly revised 3.2% increase in April and below the expected 3.1% advance.
· Trump Warns of Higher Auto Tariffs to Spur U.S. Investment
o President Donald Trump last Thursday signaled a possible hike in auto tariffs, saying it could push foreign automakers to invest more in the U.S. Automakers, including the Detroit Three, have urged the White House to ease the current 25% tariffs, especially after a deal cutting tariffs on British car imports excluded Canada and Mexico, but Trump pointed to recent investment pledges, such as GM’s $4 billion plan to upgrade three U.S. plants and shift SUV production from Mexico, and Hyundai’s $21 billion U.S. investment, including a steel plant as reasons why more tariffs are needed.
· US Budget Deficit Shrinks on Surge in Tariff Revenues
o The US government recorded a $316 billion budget deficit in May, down 9% from a year earlier, driven in part by a surge in customs receipts to a record $23 billion due to new tariffs imposed by President Trump. Gross customs receipts jumped from $6 billion in May 2024, as the tariffs on imports from most trading partners increased port-of-entry collections. Year-to-date customs revenue rose nearly 60% to $86 billion.
· US Consumer Sentiment Rebounds in June
o Preliminary estimates show that the University of Michigan’s Consumer Sentiment Index for the U.S. rose to 60.5 in June 2025, up from a near-record low of 52.2 in both May and April, and significantly exceeding market expectations of 53.5. This marks the first increase in sentiment in six months, driven by broad improvements in both current conditions and future expectations.
· UK GDP Contracts More than Expected
o The British economy shrank by 0.3% month-over-month in April 2025, marking its first contraction in six months and the steepest decline since October 2023. This followed a 0.2% growth in March and was worse than the expected 0.1% drop. The downturn was driven by several factors, including higher energy and regulated service costs, increased employers’ National Insurance contributions, a rise in Stamp Duty Land Tax rates, and major tariff announcements from President Trump. The services sector, which played the biggest role in the GDP decline, saw output fall by 0.4%.
· China to Eliminate Tariffs for African Nations in New Trade Pact
o China is set to sign a new economic agreement with 53 African nations it maintains diplomatic relations with, aiming to eliminate all tariffs and expand market access beyond just least developed countries (LDCs) to include middle-income nations as well. Although Beijing already provides duty- and quota-free access to many African LDCs, the new pact seeks to create a more level playing field. To help LDCs like Tanzania and Mali compete with more developed countries such as South Africa, China has also committed to providing additional support, including training and marketing assistance.
- GHANA
· Ghana’s Economy Gains Traction in Q1
o Ghana’s economy grew by 5.3% year-on-year in the first quarter of 2025, up from 3.6% in the previous quarter. Growth in the industrial sector strengthened to 3.4%, compared with just 0.2% earlier, largely driven by a 5.6% surge in gold production. The agricultural sector—employing around 40% of the workforce—also saw faster growth at 6.6%, up from 2.9% in Q4 2024, boosted by a recovery in cocoa output after six consecutive quarters of decline. Meanwhile, the services sector continued to expand, rising by 5.9%, slightly below the 6.3% increase in the prior quarter.
· Cedi’s appreciation could lead to revision of programme targets – IMF
o The International Monetary Fund (IMF) has revealed that the cedi’s sharp appreciation against the US dollar in the first half of 2025 could lead to a revision of some of the fund’s programme targets with Ghana. The IMF noted that future programme reviews will provide an opportunity for the team to carefully assess all of the evolving macroeconomic and financial conditions.
- AFRICA
· Angola Inflation Rate Slows to 2023-Lows
o The annual inflation rate in Angola continued to decelerate to reach 20.74% in May 2025, the lowest since December 2023, easing from 22.32% in the prior month. The stabilization of the kwanza has helped contain imported inflation, while elevated interest rates and improved availability of consumer goods have supported a sustained disinflationary trend since July 2024.
· Kenya Cuts Rates for Sixth Straight Meeting
o The Central Bank of Kenya lowered its benchmark interest rate by 25 basis points to 9.75% in June 2025, marking a sixth consecutive cut. The Monetary Policy Committee noted that inflation eased to 3.8% in May from 4.1% in April, staying below the 5±2.5% target midpoint. The decision aimed to support lending and economic activity, with the bank citing room for further monetary easing.
Sources: Bloomberg, Reuters, Trading Economics
