RFA Breakfast Paper - July 9, 2026
Egypt's Inflation Eases for Third Straight Month as Food and Fuel Pressures Fade
Annual urban inflation in Egypt slowed to 14.3% in June 2026 from 14.6% in May, marking the third consecutive monthly decline and coming in below market expectations of 15.1%. The reading was the lowest since February, reflecting a continued easing in the pass-through from the fuel price increases implemented in March. Transport inflation moderated to 24.4% from 24.7%, while the largest component of the inflation basket, food and beverages, slowed sharply to 5.4% from 7.6%, as earlier food price pressures began to subside. Inflation also eased for clothing and footwear (13.6% vs. 14.2%) and health (4.0% vs. 4.1%). However, housing and utility prices continued to accelerate, rising 41.2% from 40.4%, driven by higher electricity costs. On a monthly basis, consumer prices fell 0.4%, reversing a 1.6% increase in May and marking the first monthly decline since July 2025. The latest data suggest that inflationary pressures are gradually moderating, although elevated housing and utility costs continue to pose an upside risk to the disinflation process and are likely to keep the Central Bank of Egypt cautious in its monetary policy stance.
U.S. Stocks Rise as Technology Gains Offset Mixed Economic Data
U.S. equities closed higher on Thursday, led by strength in technology stocks that lifted the broader market. The Nasdaq outperformed with a gain of more than 1%, while the S&P 500 advanced 0.8% as investors continued to favor growth-oriented sectors. Market sentiment was also supported by encouraging labor market data, with initial jobless claims falling to 215,000, slightly below expectations, reinforcing signs of continued resilience in employment despite broader economic uncertainty. Economic data, however, presented a mixed picture as existing home sales declined 2.4% in June, reflecting the impact of elevated borrowing costs on housing demand. In the bond market, the 10-year U.S. Treasury yield edged lower to around 4.56%, providing additional support for equities. Meanwhile, oil prices eased during the session, although WTI crude remained more than 4% higher for the week as investors continued to monitor renewed geopolitical tensions between the U.S. and Iran and their potential impact on global energy markets.
NGX Gains Further as Broad Sectoral Strength Supports Market
The Nigerian equity market closed higher in Thursday’s trading session as sustained buying interest and bargain hunting in recently moderated medium- and large-cap stocks continued to support investor confidence. Consequently, the NGX All-Share Index (ASI) advanced by 1,498.75 basis points, or 0.62%, to close at 243,958.73, while market capitalization increased by ₦961.75 billion to ₦156.55 trillion. The continued rally reflects improving market sentiment, with investors maintaining strong demand for fundamentally attractive stocks across key sectors.
Market activity strengthened significantly during the session, with total trading volume surging by 219.45% to 1.66 billion shares, while the value of transactions jumped 392.14% to ₦111.98 billion across 44,780 deals. Sectoral performance was broadly positive, led by gains in the Banking and Consumer Goods sectors, while the Insurance and Industrial Goods sectors also closed higher. The Oil & Gas sector was the only sector to finish in negative territory. The sharp increase in trading activity alongside broad-based gains suggests buying momentum remained firmly intact heading into the next trading session.
