Taiwo Adekeye
Research Analyst
Oil prices went up on Monday because Hurricane Francine is affecting oil production in the U.S. Gulf of Mexico. This increase in prices was stronger than worries about Chinese oil demand and the upcoming decision on U.S. interest rates. Brent crude for November closed at $72.75 per barrel, up $1.14 (1.59%). U.S. crude for October ended at $70.09 per barrel, up $1.44 (2.1%). Traders now expect the U.S. Federal Reserve to cut interest rates by 0.5% instead of 0.25%. Lower interest rates can make borrowing cheaper, which might boost economic activity and oil demand.
U.S. Dollar Falls On Rate Cut Speculation
On Friday, the U.S. dollar dropped to its lowest level in nearly nine months against the Japanese yen. This decline was driven by media reports suggesting that the Federal Reserve might cut interest rates by 0.5% at its meeting next week. The chance of this big rate cut has risen to 51%, up from 15% earlier in the week. As a result, the dollar fell, and other currencies gained value.
Foreign Investment In China Falls 31.5% in 2024
Foreign direct investment into China totaled 580.19 billion yuan ($81.80 billion) from January to August, marking a 31.5% drop compared to the same period last year, according to the Chinese commerce ministry. This decline is greater than the 29.6% decrease reported from January to July, indicating a continued slowdown in investment over the first eight months of the year.
Nigeria’s Inflation Eases Slightly But Remains High
Nigeria’s headline inflation rate decreased to 32.15% in August 2024, down from 33.40% in July 2024, a drop of 1.25 percentage points. Despite this, it was 6.35 percentage points higher than the 25.80% recorded in August 2023, showing a significant year-on-year increase. Monthly inflation for August 2024 was 2.22%, slightly lower than July’s 2.28%. Food inflation reached 37.52% year-on-year, up 8.18 percentage points from 29.34% in August 2023. On a monthly basis, food inflation was 2.37%, down slightly from 2.47% in July 2024.
