Taiwo Adekeye, FMVA

Research Analyst

On Thursday, oil prices surged by over $1 per barrel as easing U.S. economic data alleviated concerns about a potential recession in the world’s largest economy. Geopolitical tensions and the increasing risk of a broader conflict in the Middle East are also supporting higher prices amid rising threats of retaliation. Brent crude futures climbed  1.6% to settle at $81.04 per barrel, while U.S. West Texas Intermediate crude futures increased by  1.53%, reaching $78.16.

Japan’s economy expanded by a much faster-than-expected annualised 3.1% in Q1, bolstered by  a strong rise in consumption and backing the case for another near-term interest rate hike. Private consumption, which accounts for more than half of the economic output, rose 1.0%, compared with forecast for a 0.5% increase and the first gain in five quarters. However, private consumption has been struggling with rising living cost as a result of higher import prices due to the weak yen.

China’s new home prices fell at their fastest pace in nine years in July, as a slew of support policies failed to stabilise prices and restore confidence in the struggling property sector.This prolonged real estate challenge has weighed heavily on the second largest economy making its GDP forcast unrealistic. New home prices fell 4.9% from a year earlier – the sharpest drop since June 2015 and deeper than a 4.5% slide in June. In monthly terms, new home prices were down for the 13th straight month, falling 0.7%, and matching the pace of decline in June

Nigeria’s headline inflation rate fell in July for the first time in 19 months , declining  to 33.40% in annual terms from 34.19% recorded in June. on a month-on-month basis, the headline inflation rate in July 2024 was 2.28%, slightly lower than the 2.31% recorded in June 2024. On a year-on-year basis, the rate was 9.32 percentage points higher than in July 2023, when it stood at 24.08%. Additionally, Core inflation, which excludes the prices of volatile agricultural products and energy, reached 27.47% in July 2024 on a year-on-year basis, marking an increase of 6.99 percentage points compared to the 20.47% recorded in July 2023.

Nigeria and Equatorial Guinea have signed a deal to develop and operate a gas pipeline. During a three-day visit to Equatorial Guinea, President Bola Tinubu met with President Teodoro Obiang Nguema Mbasogo to address various issues including employment, conflicts, and food security. The pipeline project, initially agreed upon with Morocco in 2016, aims to enhance regional integration and energy security, providing a route for African gas to Europe. Supported by the Economic Community of West African States (ECOWAS), the $25 billion project will have a capacity of 30 billion cubic meters per year and will be completed in three phases, linking to existing infrastructure.