Global Economy

US: U.S. equities ended the week lower, snapping a three-week winning streak as a sell-off in tech stocks dragged major indexes down. Concerns over stretched valuations and increased scrutiny of AI-related spending weighed heavily on growth stocks, with the Nasdaq Composite leading declines. The Russell 1000 Growth Index underperformed its value counterpart by 288 basis points, its widest gap since February. Sentiment was further dampened by the ongoing government shutdown, now the longest on record, which raised concerns about economic growth and disrupted data releases. In labor updates, private sector job additions remained weak, and October layoffs hit their highest in over two decades. Economic data showed services activity rebounded into expansion while manufacturing contracted for the eighth straight month. Consumer sentiment fell to its lowest level since 2022 amid shutdown worries and rising inflation expectations. In fixed income, Treasuries and municipal bonds posted modest gains, while high-yield bonds underperformed amid risk-off sentiment.

Sub-Saharan African Economies

U.K: The Bank of England (BoE) maintained its benchmark interest rate at 4.0%, with the Monetary Policy Committee voting five to four in favor of the hold. Governor Andrew Bailey signaled a dovish stance, reinforcing market expectations for a potential rate cut in December. He noted that current market pricing, which implies a terminal rate of around 3.5% within three years, reflects “a fair description” of his outlook and represents “a reasonable view of a sensible path” for policy easing.

Angola: The annual inflation rate in Angola fell further to 17.43% in October 2025, a new low since October 2023, extending a downward trend underway since August 2024. This is mainly attributed to the ongoing stability of the kwanza. Prices slowed down for most categories, including food & non-alcoholic beverages (17.76% vs 18.48% in September); alcoholic beverages & tobacco (17.93% vs 19.22%); clothing & footwear (16.97% vs 18.43%); furnishings & household equipment (16.30% vs 17.32%); transportation (20.39% vs 21.39%); and hotels, cafes and restaurants (16.29% vs 18.12%). On a monthly basis, the CPI rose by 0.93%, after a 1.08% increase in the prior month..

Nigeria: The Stanbic IBTC Bank Nigeria PMI rose to 54 in October 2025 from 53.4 in September, marking the eleventh consecutive month of expansion and indicating a stronger improvement in business conditions. Output growth reached a six-month high, driven by stronger new orders, new product launches, and easing inflation. Employment expanded for the fifth consecutive month, although the pace of job creation remained modest. On the price front, input cost inflation edged higher amid faster increases in both purchase and staff costs. Meanwhile, output prices rose at the second-slowest pace in five and a half years, reflecting limited pass-through of costs to customers.

 

Domestic Economy

Major updates during the week:

  • Nigeria’s private sector maintained strong growth momentum in October 2025, with the Stanbic IBTC PMI rising to 54.0 from 53.4 in September, driven by higher output and new orders amid moderating inflation, a stronger naira, and recent monetary easing.
  • President Bola Tinubu has sought Senate approval to raise N1.15trn in domestic borrowing to bridge the 2025 budget deficit, following Nigeria’s oversubscribed $2.3bn Eurobond issuance and plans for an additional $1bn World Bank loan, reflecting renewed investor confidence and support for ongoing economic reforms.

Nigerian equity market: Market downturn deepens as equities extend losing streak

The Nigerian equities market closed the week on a bearish note, extending its losing streak as selloffs dominated across all major sectors. The NGX All-Share Index (ASI) declined by 2.99% to close at 149,524.81 points from 154,126.45 points the previous week, while market capitalization dipped by 2.89% to ₦95trn, partly cushioned by the additional listing of Wema Bank’s 4.55bn shares. Only twenty equities recorded gains, led by Eunisell (+20.17%) and Honeywell Flour (+9.50%), while seventy-five stocks declined, including SKYAVN (-18.99%), Oando (-16.75%), and MTNN (-8.29%). Sector performance was broadly negative, with the Industrial Goods sector leading the laggards, posting a 1.09% week-on-week loss. The sustained sell pressure reflects cautious investor sentiment amid ongoing profit-taking and portfolio rebalancing.

Nigerian fixed-income market: Treasury yields edge higher as bonds attract mild buying interest

At the first NTB auction for November, the CBN offered ₦650.00bn across three maturities, recording total subscriptions of ₦1.18trn (bid-to-cover ratio: 1.81x) and allotting ₦546.24bn (84.04% of offers). Demand was concentrated on long-dated bills, while short- and mid-tenor bills were undersubscribed. Stop rates for short- and mid-tenors were unchanged, but the long-dated bill cleared lower at 16.04% from 16.14% at the previous auction. In the secondary market, average Treasury bills yield rose by 55bps to 17.39%, driven by mild selloffs at the short end, while average bond yield moderated slightly by 12bps to 15.77%, supported by buying interest in short- and mid-term papers. Overall, market sentiment reflected cautious optimism ahead of the November bond auction, where investors are likely to position around attractive mid-curve maturities.