Akintunde Oyedokun
Research Analyst
Oil prices fell more than 1% on Tuesday as OPEC+’s decision to pause output hikes in early 2025, weak global manufacturing data, and a stronger U.S. dollar weighed on sentiment. Brent crude slipped to $64.08 a barrel, while WTI fell to $60.21.
The impact of U.S. sanctions on Russian oil firms faded, while Japan’s factory activity hit a 19-month low, adding to demand concerns. A firmer dollar made crude costlier for other currency holders, and traders now await U.S. inventory data expected to show another stock build.
Australia’s Central Bank Holds Rate at 3.6% Amid Inflation Concerns
The Reserve Bank of Australia kept its benchmark rate steady at 3.6%, stressing caution as inflation stays high and housing prices rise. Governor Michele Bullock noted that while monetary policy is slightly restrictive, inflation is unlikely to return to the 2–3% target range before 2026.
The decision pushed the Australian dollar slightly lower and weakened bond prices. With inflation still elevated and job growth mixed, markets expect the RBA to delay any rate cuts until mid-2026.
Japan’s Manufacturing Decline Deepens on Weak Auto, Chip Demand
Japan’s factory activity contracted in October at the fastest pace in 19 months as sluggish demand in the automotive and semiconductor sectors dragged output. The Manufacturing PMI fell to 48.2, marking four straight months of contraction. New and export orders declined sharply, while input costs rose due to higher labour and material expenses. Despite weaker demand, firms were slightly more upbeat, expecting recovery from new product launches, AI adoption, and improved global trade.
Morocco’s Jobless Rate Eases to 13.1% Despite Farm Sector Losses
Morocco’s unemployment rate fell to 13.1% in September from 13.6% a year earlier, driven by gains in services, construction, and industry that offset job cuts in the drought-affected agricultural sector. According to the national statistics agency HCP, 1.62 million people were unemployed out of a population of 37 million. Youth unemployment remained elevated at 38.4%, while joblessness among graduates and women stood at 19% and 21.6%, respectively.
Tinubu Seeks N1.15 Trillion Loan to Fund 2025 Budget
President Bola Tinubu has asked the Senate to approve a N1.15 trillion domestic loan to cover the 2025 budget deficit and fund key projects. The move follows earlier approvals for external borrowings, including $2.35 billion and a $500 million sovereign sukuk. While the loan supports growth and reduces foreign currency risks, it adds to Nigeria’s rising public debt, now at N149.39 trillion.
