In this week's edition:
· U.S. Equities Closed in Record Amid Strong Corporate Earnings and a Pullback in Oil Prices.
· Gold Prices Fell 2.02% W/W, As Bullion Continues to Lose Appeal Amid Ongoing U.S. vs Iran Peace Talks and Persistent Inflation Concerns.
· Ghana’s Treasury Auction Undersubscribed by 11.4%, Marking Eighth Consecutive Shortfall as Yields Show Mixed Movement
· GSE Edges Higher as Financial Stocks Weigh on Momentum, ADB Saw First Move After a Long Flat Trading; GSE‑CI 1.73% W/W to 72.52% YTD, While GSE‑FI Dropped 0.02% W/W to 90.21% YTD
Kindly click to view the full report: Global Market Update - May 4, 2026
AROUND THE GLOBE
· United States Q1 Growth Rebounds but Misses Expectations
o The US economy grew at an annualized 2.0% in Q1 2026, up from 0.5% in Q4 but below expectations of 2.3%. Growth was driven by a rebound in government spending (4.4%) and strong private investment (8.7%), with business spending surging on AI-related investments. However, consumer spending slowed to 1.6%, reflecting softer demand. Net trade weighed on growth, as imports (21.4%) outpaced exports (12.9%), offsetting gains from domestic demand and highlighting external sector drag.
· ECB Holds Rates as Iran War Raises Inflation Risks
o The European Central Bank (ECB) left interest rates unchanged at its April meeting, keeping the main refinancing rate at 2.15% and the deposit facility at 2.0%, as policymakers assess the economic impact of the Iran war. Officials highlighted rising upside risks to inflation and increasing downside risks to growth, while noting that long-term inflation expectations remain anchored despite a rise in short-term pressures. ECB President Christine Lagarde said the decision was unanimous, though policymakers debated alternatives, including a potential rate hike, reflecting heightened uncertainty around the outlook.
· Eurozone Annual GDP Growth Slows to 0.8% in Q1
o Euro area GDP grew by 0.8% year-on-year in Q1 2026, slowing from 1.3% in the previous quarter and missing expectations of 0.9%, marking the weakest expansion since Q2 2022. The slowdown reflects higher energy costs linked to the Middle East conflict, which weighed on household consumption across major economies. Growth eased in France, Germany, Italy, and the Netherlands, while Spain remained the standout performer, expanding by 2.7%. The data point to weakening momentum in the bloc amid rising external pressures and softer domestic demand.
· Bank of England Holds Rates as Iran Conflict Clouds Outlook
o The Bank of England voted 8–1 to keep the Bank Rate at 3.75% in April 2026, with one member supporting a hike to 4% and others signaling openness to further tightening if needed. Policymakers flagged heightened uncertainty from the Middle East conflict, particularly its impact on energy prices. Inflation has risen to 3.3% and is expected to increase further, raising concerns about second-round effects on wages and pricing. However, a softening labour market, weaker growth, and tighter financial conditions are expected to help contain inflationary pressures over time.
· Eurozone Inflation Surges to 3% on Energy Shock
o Euro area inflation rose to 3.0% in April 2026, the highest since September 2023, up from 2.6% in March and slightly above expectations. The increase was driven mainly by a 10.9% jump in energy prices, the strongest since early 2023, amid the Middle East conflict. Food and industrial goods inflation also edged higher, while services inflation slowed to 3.0%. Core inflation eased slightly to 2.2%. Inflation accelerated across major economies, including Germany, France, Italy, and Spain, reflecting broad-based price pressures.
· People's Bank of China to Inject CNY 300 Billion via Reverse Repo
o The People’s Bank of China will inject CNY 300 billion into the banking system through an outright reverse repo operation on May 6, aiming to maintain ample liquidity and stabilize financial market conditions. The operation will be conducted via interest-rate bidding under a fixed-quantity framework, with a 91-day tenor, signaling continued monetary support to ensure stable funding conditions and reinforce liquidity management in the banking system.
- GHANA
· Bank of Ghana Releases Financial Results for Full Year 2025
o The Bank of Ghana’s 2025 financial statements show a loss of GH¢15.63 billion, driven largely by policy costs aimed at stabilizing the economy. Operational income more than doubled to GH¢22.28 billion, supported by gold-related gains and other income sources. However, this was offset by a sharp rise in operating expenses, particularly open market operations, which reached GH¢16.73 billion. The Bank’s equity position remained negative at GH¢93.82 billion due to the Domestic Debt Exchange Programme and monetary policy actions, despite improved income from reserves, fees, and gold sales.
- AFRICA
· South Africa Trade Surplus Narrows on Import Surge
o South Africa’s trade surplus narrowed to ZAR 31.9 billion in March 2026 from a revised ZAR 35.9 billion in February, as imports grew faster than exports. Imports jumped 18.4% to ZAR 156 billion, led by gains in vehicles, machinery, chemicals, and mineral products. Exports rose 12.1% to ZAR 188 billion, supported by stronger shipments of minerals, chemicals, and transport equipment, though base metals declined 7%. The widening import bill outweighed export growth, reflecting stronger domestic demand and elevated industrial input purchases during the month across key trading categories and supply chains in South Africa.
· Nigeria Private Sector Growth Strengthens in April
o Nigeria’s PMI rose to 52.4 in April 2026 from 51.9 in March, signaling continued expansion in private sector activity. Output grew steadily on stronger demand and rising new orders, despite fuel cost pressures linked to Middle East tensions. Employment and purchasing activity increased, while inventories rose at the fastest pace in five months as firms built buffers. Most sectors recorded gains except services. Business sentiment improved, with firms planning expansion through new branches and market entry, though confidence remained constrained by persistent cost inflation and input price pressures across the economy during the period.
Sources: Bloomberg, Reuters, Trading Economics
