RFA Breakfast Paper - June 18, 2026
Ghana Producer Inflation Accelerates to 5.8% in May
Producer prices in Ghana increased 5.8% year-on-year in May 2026, marking a notable acceleration from the exceptionally low levels recorded late last year and indicating a gradual build-up of cost pressures at the producer level. While producer inflation remains relatively subdued by historical standards, the latest reading suggests that businesses are facing higher input costs, which could eventually filter through to consumer prices if sustained. The increase comes amid higher global energy costs and lingering supply-side pressures affecting parts of the economy.
U.S. Markets Rebound as Middle East Peace Deal Eases Investor Concerns
U.S. equity markets ended the shortened trading week on a strong note as investors welcomed an interim peace agreement between the United States and Iran, a development that could lead to the reopening of the Strait of Hormuz and help stabilize global energy markets. The improved geopolitical backdrop lifted risk appetite across asset classes, allowing stocks to recover much of the previous session’s losses following the Federal Reserve’s more hawkish-than-expected policy decision. The S&P 500 advanced 1.2%, while the Nasdaq outperformed, supported by renewed strength in technology shares after reports that Intel reached a chip manufacturing agreement with Apple. Lower oil prices also reinforced the positive sentiment, with WTI crude trading near recent lows of $77 per barrel, easing concerns about energy-driven inflation pressures. While equities rallied, fixed-income markets continued to reflect caution around the interest rate outlook. The 2-year Treasury yield remained elevated at 4.18%, near its highest level of 2026, signaling expectations that the Federal Reserve may keep rates higher for longer. At the same time, the 10-year Treasury yield declined to 4.46%, suggesting investors remain confident that inflation pressures will moderate over the longer term. Higher short-term yields also continued to support the U.S. dollar, which climbed to a new 2026 high against a basket of major currencies.
Nigerian Equities Tumble as Investors Continue to Reduce Risk Exposure
The Nigerian equity market closed lower for the fifth consecutive trading session as persistent investor caution continued to weigh on sentiment. Concerns surrounding the country's security environment kept investors on the sidelines and triggered broad-based selling across medium and large-cap stocks. As a result, key market indicators recorded another sharp decline, with the NGX All-Share Index falling by 3,397.80 points, or 1.41%, to close at 237,404.92. Similarly, market capitalization shed ₦2.18 trillion to settle at ₦152.27 trillion, reflecting the sustained pressure on equities as investors reduced exposure amid heightened uncertainty. Despite the market's weak performance, trading activity remained robust. Total volume traded rose by 4.33% to 691.64 million units, while the value of transactions surged by 192.28% to ₦116.85 billion, suggesting increased participation from institutional investors and large negotiated trades. A total of 50,025 deals were executed during the session. The divergence between declining prices and stronger trading activity indicates that investors remain active in the market, although sentiment continues to favour selling over fresh risk-taking.
