In this week's edition:
· U.S. Stocks Extend Gains as Jobs Data Reflects Labour Market Resilience
· Gold Edges Up 0.64% W/W, Supported by Safe-Haven Demand Despite Improving Economic Sentiment and New US Tariffs on Steel and Aluminum
· Ghana’s Treasury Auction Records 34.39% Undersubscription; Yields Stable at Short End but Continue Declining at Longer Tenors
· GSE Extends Three-Week Losing Streak Amid Deepening MTNGH Slump; GSE-CI Falls to 22.83% YTD While Financial Stocks Index Shows Resilience, Rising to 36.29%
Kindly click to view the full report: Global Market Update - June 9, 2025
AROUND THE GLOBE
· US Jobs Report Beats Expectations Despite Slowdown
o US nonfarm payrolls rose by 139K in May 2025, topping forecasts of 130K but slowing from April’s 147K. Gains were led by health care, leisure, and social assistance, while manufacturing and federal jobs declined. March and April's figures were revised downwards by 95K. The labor market remains solid but may face pressure from Trump-era policy changes.
· US Consumer Credit Growth Beats Forecasts
o US consumer credit rose by $17.87 billion in April 2025, far exceeding expectations. Revolving credit (e.g., credit cards) jumped at a 7% annual rate, signaling stronger consumer spending, while nonrevolving credit (e.g., auto and student loans) grew at a slower 3.3% rate, reflecting steady but cautious borrowing for big-ticket items.
· Eurozone GDP Growth Hits 2-Year High
o The Eurozone economy expanded by 0.6% in Q1 2025, the fastest pace since Q3 2022 and double the initial 0.3% estimate. Growth was led by Ireland’s 9.7% surge and solid performances from Germany and Spain. Fixed investment rose sharply, while household spending moderated. Net trade contributed positively, though inventories dragged slightly on overall growth.
· China Consumer Prices Fall for Fourth Straight Month
o China’s CPI fell 0.1% year-on-year in May 2025, extending its deflation streak to four months amid weak domestic demand and trade tensions. Food prices dropped 0.4%, while non-food prices remained flat. Core inflation rose to 0.6%, the highest since January. On a monthly basis, CPI slipped 0.2%, reversing April’s 0.1% gain.
· Japan Q1 GDP Revised Up, But Growth Stalls
o Japan’s economy showed no growth in Q1 2025, better than the initial -0.2% estimate but down from 0.6% in Q4 2024. Consumer spending edged up 0.1% and business investment rose 1.1%. However, government spending fell 0.5% and net trade dragged on growth as exports declined and imports surged ahead of U.S. tariffs.
· Russia Cuts Interest Rate by 100bps to 20%
o The Bank of Russia slashed its key rate by 100bps to 20% on June 6, citing easing inflation, now at 9.8%. A stronger ruble and tight policy helped slow consumer price growth, though food and service inflation remain high. The Bank pledged to maintain tight conditions to return inflation to 4% by 2026.
- GHANA
· Ghana’s Inflation Falls to 18.4% in May 2025, Lowest Since Early 2022
o Ghana's annual inflation rate fell to 18.4% in May 2025, down from 21.2% in April, marking the fifth consecutive monthly decline and the lowest since February 2022 . The decrease was driven by lower transportation costs and reduced non-food inflation . Despite the improvement, inflation remains above the Bank of Ghana's 6–10% target range.
· GRA to Implement GH₵1 Fuel Levy from June 16, 2025
o The Ghana Revenue Authority (GRA) will implement a GH₵1.00 per litre fuel levy starting June 16, 2025, following consultations with oil marketers who requested a delay from the original June 9 date. The new levy aims to address energy sector debts and will apply to petroleum products lifted on or after this date, with rates revised under the Energy Sector Levies Act.
- AFRICA
· South Africa’s Current Account Deficit Narrows Slightly in Q1
o South Africa’s current account deficit narrowed to R35.6 billion ($2 billion) in Q1 2025 from a revised R39.3 billion, defying expectations of a wider gap. The deficit remained at 0.5% of GDP, better than the 0.7% forecast. A slightly lower trade surplus and improved terms of trade contributed to the outcome, per central bank data.
· Nigeria–U.S. Trade Hits $13bn, 2nd Largest in Africa — U.S. Envoy
o U.S. Ambassador to Nigeria, Richard Mills, has reaffirmed America’s commitment to boosting trade and investment in Africa, noting Nigeria ranked second in U.S. trade partnerships on the continent with $13 billion in goods and services exchanged in 2024. Speaking at Lagos Business School, Mills said the Trump-led administration is refocusing U.S. strategy in Africa.
· Sources: Bloomberg, Reuters, Trading Economics
