Akintunde Oyedokun
Research Analyst
Oil prices fell on Tuesday, with Brent at $67.64 and WTI at $65.16 — both hitting five-week lows — as OPEC+ announced a larger-than-expected output increase of 547,000 bpd for September.
Concerns over slowing global demand, especially after weak U.S. services data, further pressured prices. President Trump’s renewed threats of tariffs on India over its Russian oil purchases had little impact, as the market remains unconvinced of any near-term supply disruption.
UK Services Struggle As New Orders, Jobs Fall Sharply in July
Britain’s services sector weakened in July, with new orders dropping to their lowest since November 2022 and staffing levels falling at the fastest rate in six months, according to S&P Global. The PMI slipped to 51.8, while new business fell to 47.7, dragged down by low client confidence and global economic worries. Employment dropped as firms responded to rising costs and weak demand.
Still, business confidence improved on hopes of interest rate cuts. The Bank of England is expected to reduce rates to 4% on Thursday despite persistent inflation concerns.
Germany’s Services Sector Returns To Growth In July
Germany’s services sector rebounded in July, with business activity expanding for the first time in four months, driven by new orders and increased demand. The HCOB final services PMI rose to 50.6 from 49.7 in June, indicating marginal growth. Although backlogs continued to fall and job growth slowed, new business inflows and expanded service offerings signaled a gradual recovery. The composite PMI, covering both services and manufacturing, also edged up to 50.6, suggesting the economy may see modest growth in Q3 after a Q2 contraction.
South Africa’s Private Sector Posts Modest July Growth, Faces Tariff Headwinds
South Africa’s private sector recorded modest growth in July, with the S&P Global PMI edging up to 50.3 from 50.1 in June — marking a third straight month of expansion. The uptick was driven by higher domestic sales and sustained employment gains, though export orders declined. Rising staff and fuel costs pushed input prices higher, leading to a slight increase in output prices. Business sentiment improved to a six-month high, but optimism remained tempered by concerns over a 30% U.S. export tariff and global trade uncertainty.
Nigeria’s Q1 2025 Capital Inflows Surge 67%, On Short-Term ‘Hot Money’
Nigeria attracted $5.64 billion in capital inflows in Q1 2025, a 67% jump from the previous quarter, mostly from foreign investors chasing high returns on OMO and Treasury Bills. These short-term instruments accounted for nearly 75% of total inflows amid record-high interest rates.
Portfolio investment dominated at 92%, while FDI remained low at $126 million. Though the naira has stabilised, analysts warn that Nigeria’s heavy reliance on volatile hot money poses risks to long-term economic stability.
