Akintunde Oyedokun
Research Analyst
Oil prices dropped by more than $2 a barrel on Monday following reports of a potential ceasefire deal between Israel and Lebanon. Brent crude settled at $73.01, down 2.87%, while U.S. WTI closed at $68.94, a 3.23% decline. Despite the ceasefire progress, concerns over supply disruptions persist, with OPEC+ considering maintaining current output cuts at its upcoming meeting.
India Foresees Declining Food Inflation, Stable Economic Outlook
India predicts a drop in food inflation, aided by a bumper summer crop. While October inflation hit a 14-month high, favorable weather and higher crop prices are expected to boost winter harvests. The economy is on track for 6.5%-7% growth, though export challenges and geopolitical issues may pose risks. Despite inflation pressures, India remains cautiously optimistic about its economic trajectory.
UK Disposable Income Declines in October, Inflation To Affect Christmas Spending
Asda’s October survey shows UK households experienced a £1.98 drop in disposable income, leaving an average of £247 per week. This decline, driven by a 2.3% inflation increase due to higher energy costs, is expected to reduce spending power over the Christmas period. October’s retail sales also saw a significant drop, signaling economic slowdown. Despite some retailers’ optimism for the holiday season, JD Sports warned of lower profits due to cautious consumer spending.
Kenyan Shilling Remains Stable Against US$, No Change in Exchange Rate
The Kenyan shilling maintained a stable position against the US dollar on Monday, with no fluctuation in its exchange rate. According to data from the London Stock Exchange Group, at 0714 GMT, the shilling was trading at 129.00/130.00 to the dollar, mirroring the rate from Friday’s close. This stability reflects consistent trading activity for the Kenyan currency.
Nigeria’s Economy Grows 3.46% in Q3, Below 6% Target
In the third quarter of 2024, Nigeria’s economy grew by 3.46%, reflecting an improvement from earlier in the year. This growth was predominantly supported by the services sector, which showed notable strength during the period. Despite the positive momentum, the growth fell short of President Tinubu’s ambitious target of 6%. The oil sector saw a modest increase, with production averaging 1.47 million barrels per day, while growth in agriculture and industry showed signs of slowing down, suggesting challenges in these key sectors.
