Akintunde Oyedokun
Research Analyst
Oil prices rose Tuesday as Western sanctions on Russia and Iran tightened supply, while China’s economic plans fueled demand expectations. Brent crude climbed to $77.05 per barrel, up 0.98%, and WTI settled at $74.25, up 0.94%.
Market gains were supported by holiday travel, higher Saudi oil prices to Asia, and heating oil demand from cold weather in the U.S. and Europe. However, global inflation concerns and bearish technical signals may limit further advances.
Swiss Inflation Falls Again, Boosting Expectations For SNB Rate Cuts
Swiss inflation dropped to 0.6% in December, down from 0.7% in November, marking the fourth consecutive month below 1%, according to the Federal Statistics Office. Analysts widely expect the Swiss National Bank (SNB) to cut rates by 25 basis points in March, with market expectations for the move rising to 98.4%. Economists suggest the SNB may consider further cuts in 2025 amid concerns over disinflation and eurozone economic weakness. Swiss inflation averaged 1.1% in 2024, within the SNB’s 0%-2% target range.
French Inflation Rises Slightly In December, Below Expectations
French consumer prices increased less than anticipated in December, according to preliminary data from INSEE. The harmonized inflation rate was 1.8% year-on-year, up from 1.7% in November but below the 1.9% forecast by economists. Manufactured goods prices dropped 0.4%, while energy prices rose 1.2% after a 0.7% decline in November. Service and tobacco price inflation remained stable, with France’s CPI holding steady at 1.3% year-on-year.
Ghana’s Cocoa Purchases Drop Amid Election-Related Payment Delays
Cocoa purchases in Ghana fell in December as Cocobod payment delays and tight financing from exporters disrupted the market. The December 7 election added to uncertainty, with buyers scaling back operations and farmers struggling to sell their produce.
Cocobod’s new financing model faced challenges during the election period, leaving some buyers unable to pay farmers promptly. While Cocobod denies significant delays, sources reported a 20% drop in purchases, with beans piling up on plantations and fears of smuggling growing.
FG Allocates N11.5bn For Housing Under Renewed Hope Agenda
The Federal Government has allocated N11.5 billion in the proposed 2025 budget to construct 20,000 housing units as part of the Renewed Hope Agenda. This funding is part of the Ministry of Housing’s N98.1 billion budget.
The initiative aims to address Nigeria’s housing deficit, with 13,612 units already under construction. The program includes both Public-Private Partnerships for Renewed Hope Cities and government-subsidized Renewed Hope Estates.
However, Housing Minister Musa Dangiwa stresses that an annual investment of N5.5 trillion is required to solve the housing crisis, far surpassing the current allocation.
