Akintunde Oyedokun
Research Analyst
Oil prices fluctuated on Tuesday amid rising U.S.-China trade tensions and renewed U.S. sanctions on Iran. West Texas Intermediate (WTI) crude fell to $72.70 per barrel, while Brent crude edged up to $76.20.
The market dipped as new U.S. tariffs on Chinese imports triggered retaliation from Beijing, raising concerns about demand. However, prices rebounded after U.S. President Donald Trump reinstated his “maximum pressure” campaign to curb Iran’s oil exports. With ongoing trade disputes and potential supply disruptions, volatility is expected to persist.
U.S. Manufacturing Grows, But Tariff Risks Remain
U.S. manufacturing grew in January for the first time since 2022, with the ISM PMI rising to 50.9. However, new tariffs imposed by President Trump on China, Mexico, and Canada raise concerns about supply chain disruptions and inflation. While tariffs on Mexican and Canadian goods were paused, a 10% levy on Chinese imports is moving forward, strengthening the dollar and making U.S. exports less competitive.
Economists warn that these trade policies could slow economic growth and raise costs for industries like construction. Markets reacted with volatility, while Treasury yields fell as investors sought safe assets.
Australian Household Spending Rises For Third Month, Boosting Economic Outlook
Australian household spending rose for the third consecutive month in December, driven by higher discretionary spending on vehicles, dining, air travel, and streaming services, according to ABS data. The Monthly Household Spending Indicator (MHSI) increased 0.4% from November, with annual growth reaching 4.3%, the highest since March 2024. While the data signals improving consumption, it is unlikely to affect expectations for an upcoming rate cut. Consumer spending is expected to contribute 0.2 percentage points to Q4 GDP. The MHSI, replacing the retail sales report mid-year, covers a broader 68% of household consumption.
Egypt’s Non-Oil Private Sector Sees First Growth in Over Four Years
Egypt’s non-oil private sector expanded in January for the first time since August, reaching its best performance since November 2020, according to an S&P Global survey. The Purchasing Managers’ Index (PMI) rose to 50.7 from 48.1 in December, signaling growth driven by improved domestic demand and easing cost pressures. Output and new orders increased, but business confidence remained cautious due to economic uncertainty. Employment stabilized after recent job cuts, and cost pressures eased to an eight-month low, leading to the slowest rise in output prices in over four years.
Nigeria Approves $1.07 Billion for Healthcare, Human Capital Reforms
The Federal Executive Council (FEC) has approved $1.07 billion for healthcare sector reforms under the HOPE (Human Capital Opportunities for Prosperity and Equity) programme. The funding includes two $500 million concessional loans from the International Development Association (IDA) and a $70 million grant from global partners.
Finance Minister Wale Edun also announced a ₦4.8 billion allocation for HIV treatment, covering 150,000 treatment packs over four months.
Health Minister Prof. Muhammad Pate stated that the funds will improve healthcare governance, expand primary healthcare, and enhance workforce recruitment and training. Backed by the World Bank, the HOPE programme aims to boost human capital development in healthcare and education.
