Akintunde Oyedokun
Research Analyst
Oil prices climbed nearly 1% on Friday, marking a two-week high as the intensifying Russia-Ukraine conflict added significant geopolitical risk premium to the market. Brent crude rose 1.3%, settling at $75.17 a barrel, while U.S. West Texas Intermediate (WTI) crude increased 1.6% to $71.24. This week’s price surge, up about 6% overall, came as Moscow intensified its offensive, with Ukraine receiving greater missile support from the U.S. and the U.K., further fueling concerns about geopolitical instability in the region.
Japan’s Inflation Surpasses BOJ Target, Rate Hike Expected in December
Japan’s core inflation remained above the 2% target in October, with key price indices accelerating, increasing pressure on the Bank of Japan to raise rates. Service price gains indicate rising labor costs are being passed on, further supporting expectations for a rate hike. With the yen’s depreciation fueling inflation, economists anticipate the BOJ will act in December.
UK Home Prices To Outpace Inflation, Rental Costs To Rise Sharply
British home prices are projected to rise by 3.1% in 2025 and 4.0% in 2026, outpacing inflation, while rental costs are expected to increase by 4-5% next year. The rising rent burden makes it harder for first-time buyers to save for a home deposit. However, recent interest rate cuts by the Bank of England are expected to improve affordability, as mortgage rates become more competitive. In London, home prices are forecast to rise by 3.0% in 2025.
Morocco’s Inflation Rate Moderates To 0.7% In October, Impacted By Food, Non-Food Price Changes
In October, Morocco’s annual inflation, as tracked by the consumer price index (CPI), experienced a modest decline, easing to 0.7% from 0.8% in the previous month, as reported by the country’s statistics agency on Friday. The primary contributor to inflation, food prices, saw a year-on-year increase of 0.5%, while the inflation rate for non-food items rose by a slightly higher 0.7%. Additionally, core inflation, which excludes more volatile components, saw a 0.3% month-on-month increase, bringing the year-on-year rise to 2.4%.
FG Secures N346.16bn In November 2024 Bond Auction with Increased Allotments
The Federal Government successfully raised a total of N346.16 billion during its November 2024 bond auction, marking a notable increase in allotments despite a 33.33% reduction in the total amount offered compared to previous auctions. The auction, conducted by the Debt Management Office (DMO) on November 18, 2024, saw strong demand for government bonds across various tenors. The bond auction was divided into three tranches: a 5-year, a 10-year, and a 30-year bond. Despite the reduction in the total offered amount, investor confidence remained high, resulting in the successful allocation of the full N346.16 billion raised.
The DMO allocated N120 billion for the 5-year bond, N120 billion for the 10-year bond, and N106.16 billion for the 30 -year bond.
