In this week's edition:
· U.S. Stocks Extended the Previous Week’s gains Last Week, as Tech Stocks Rallied on AI optimism
· Gold Prices Dropped by 2.68% to Record the Second Consecutive Week of Decline Due to Fading Expectations of a Federal Reserve Rate Cut
· Ghana’s Treasury Auction was Undersubscribed by 13.31% Amid Mixed Yield Movements, Although All Bids were Accepted
· Ghanaian Equities Market Regained Its Bullish Momentum with Seven Gainers Elevating the GSE-CI by 0.22%
Kindly click to view the full report: Global Market Update - November 3, 2025
AROUND THE GLOBE
· Trump, Xi Set to Finalize Trade and Tariff Deal
o President Trump and Chinese leader Xi Jinping are expected to seal a long-awaited trade and tariff agreement Thursday in South Korea after months of strained relations. The deal could see the U.S. reduce tariffs on Chinese goods in exchange for Beijing’s pledge to curb precursor chemicals used in fentanyl production. Trump also hinted at possible progress on TikTok’s U.S. ownership issue. Beijing expressed readiness to achieve “positive results.” Existing agreements that lowered retaliatory tariffs to roughly 55% on U.S. goods and 10% on Chinese goods, and reopened the rare earth magnet trade, are set to expire on November 10.
· US Mortgage Rates Fall to 13-Month Low
o The average rate on a 30-year fixed mortgage fell to 6.17% as of October 30, 2025 — the lowest since October 2024 and down from 6.19% a week earlier, according to Freddie Mac. The decline followed the Federal Reserve’s quarter-point rate cut on Wednesday. “Mortgage rates decreased for the fourth consecutive week. The last few months have brought lower rates, and homebuyers are increasingly entering the market,” said Sam Khater, Freddie Mac’s chief economist.
· Euro Area Inflation Slows to 2.1%, Near ECB Target
o Euro area inflation eased to 2.1% in October 2025, matching market expectations and down slightly from 2.2% in September, edging closer to the European Central Bank’s 2% goal, preliminary data showed. Food, alcohol, and tobacco prices rose at a slower 2.5% pace (vs 3.0%), driven by declines in both processed (2.4% vs 2.6%) and unprocessed food (3.2% vs 4.7%). Non-energy industrial goods inflation cooled to 0.6% (vs 0.8%), while energy costs fell further by 1.0% (vs -0.4%). Meanwhile, services inflation climbed for a second month to 3.4%, the highest since April, and core inflation stayed steady at 2.4%, just above forecasts of 2.3%.
· UK House Prices Rise Above Forecasts
o UK house prices rose 2.4% year-on-year in October 2025, topping forecasts of 2.3% and up from 2.2% in September, Nationwide reported. Prices increased 0.3% month-on-month, beating expectations of no change. Chief Economist Robert Gardner said the market remains resilient despite weak confidence and higher mortgage rates, with steady approvals and strong first-time buyer demand. He added that affordability could improve as income growth outpaces prices, supported by low unemployment and potential Bank Rate cuts.
· China Manufacturing Growth Below Forecasts
o China General Manufacturing PMI fell to 50.6 in October 2025 from September’s 51.2, missing the 50.9 forecast. Slower growth in new orders and output drove the slowdown, with domestic demand supporting orders while exports fell at the fastest pace since May. Employment rose for the first time in seven months, and purchasing activity increased for the fourth month. Input prices climbed moderately, but selling prices fell. Business sentiment slipped to a six-month low amid trade concerns.
- GHANA
· BoG to Inject $1B into Forex Market in November
o The Bank of Ghana will inject $1 billion into the market in November under its FX Intermediation Programme, auctioning about $300 million twice weekly to licensed banks on a spot basis. In October, the BoG injected $1.15 billion, contributing to a 13.9% cedi appreciation against the dollar and a 34.86% YTD gain. The shift to spot, market-neutral auctions has improved dollar supply, market efficiency, and transparency.
- AFRICA
· Kenya Inflation Steady at 4.6%
o Kenya’s annual inflation remained at 4.6% in October 2025, unchanged from September and the highest since June last year. Inflation stayed below the 5% midpoint of the central bank’s target for the 17th consecutive month, supported by weak domestic demand. Core inflation—the central bank’s preferred gauge—slowed to 2.7% from 2.9% in September. On a monthly basis, consumer prices rose 0.2%, matching the previous month’s pace
· South Africa PPI Inflation Rises Less than Expected
o South Africa’s PPI inflation rose to 2.3% in September 2025 from 2.1% in August, below analysts’ forecast of 2.6% and the highest since August 2024. The increase was driven by food, beverages, tobacco, textiles, petroleum, and metals. On a monthly basis, producer prices fell 0.1%, down from a 0.3% rise in August.
Sources: Bloomberg, Reuters, Trading Economics
