Akintunde Oyedokun
Research Analyst
Oil prices rose sharply on Monday, with Brent and WTI futures climbing nearly 3% after OPEC+ announced a month-long delay to its planned production increase. Brent reached $75.08 a barrel, and WTI hit $71.47, while investors remained attentive to the U.S. presidential election. OPEC+ confirmed it would extend its 2.2 million bpd cut into December, with production increases pushed back amid weak demand. Meanwhile, Libya’s oil output rebounded, and Iran is set to boost production by 250,000 bpd.
India’s Manufacturing Rebounds On Strong Demand, Job Growth
India’s manufacturing sector gained momentum in October after three months of slower growth, driven by significant improvements in demand that boosted job creation and improved the business outlook, according to the latest HSBC India Manufacturing PMI by S&P Global. The index rose to 57.5 in October from 56.5 in September, surpassing preliminary estimates. Elevated demand and strong international sales from Asia, Europe, Latin America, and the U.S. have fueled this growth, though inflationary pressures from rising input costs also increased, with firms passing on higher expenses to clients at an accelerated.
Spanish Manufacturing Hits 2-Year High Amid Strong Output Growth
Spain’s manufacturing sector showed robust expansion in October, achieving its highest growth since early 2022. The HCOB Purchasing Managers’ Index (PMI) rose to 54.5, marking nine consecutive months above the growth threshold. The report highlights increased export business and workforce growth, while optimism builds around a stable economic outlook supported by ECB easing measures. Economic growth in Spain outpaced the eurozone in Q3, with GDP up 0.8% and annual growth at 3.4%.
Italy’s Manufacturing Slumps Deeper As Output, Orders Slip
Italy’s manufacturing sector continued its downward trend in October, contracting for the seventh month straight with an accelerated decline. The HCOB Global PMI dropped to 46.9 from September’s 48.3, staying below the 50-point mark that indicates growth. HCOB economist Jonas Feldhusen highlighted that weakening production and deteriorating order volumes are driving the sector’s slump, as all major components, including output and new orders, registered further decrease.
South Africa’s Rand Gains On U.S. Election Outcome, Feds Rate Decision
South Africa’s rand strengthened on Monday amid a weaker dollar, as investors focused on the upcoming U.S. presidential election and the Federal Reserve’s interest rate decision later this week. By 1522 GMT, the rand was trading 0.9% higher at 17.50 per dollar, while the dollar index slipped by 0.3%. Republican Donald Trump and Democrat Kamala Harris are in a close race ahead of Tuesday’s election, while markets expect a 25 basis-point rate cut from the Fed on Thursday. “With the U.S. election and Fed policy meeting shaping the market, the rand may see more volatility,” said Angielee Pan, sales trader at IG Group.
14m More Nigerians Enter Poverty in 2024
A World Bank report reveals that stagnant wages have pushed 14 million Nigerians into poverty this year, with nearly 47% living below the $2.15 daily international poverty line.
To address this, the Nigerian government has started cash assistance for 15m households, distributing N75,000 in three installments. However, without urgent reforms, poverty could reach 52% by 2026.
Despite efforts to combat inflation, purchasing power remains low. The report stresses that macroeconomic stabilization alone isn’t enough; comprehensive reforms are needed to create sustainable pathways out of poverty, as about 34.3% of workers live in poverty due to low-wage jobs.
