Global economic developments remained in focus on Thursday as mixed signals emerged across key economies, ranging from property prices in China to policy action in Europe.
In China, property prices showed a modest uptick, but export demand and inflation stayed weak, indicating persistent structural headwinds. Policymakers are leaning on technology and consumption to support growth amid global trade pressures.
India’s trade flows took centre stage as diesel exports to Europe hit record highs, underscoring strong overseas demand. Domestically, concerns over fiscal deficit levels, higher imports and expectations of potential rate cuts are shaping the broader economic outlook.
In the United States, the looming threat of a government shutdown clouded the Federal Reserve’s visibility on monetary policy. Even so, Wall Street extended its rally on hopes of easing inflation, while banks eyed the possibility of lighter regulatory burdens.
Japan reported a rise in its jobless rate, raising concerns about the labour market. The Bank of Japan cautioned that global risks could stall wage growth, despite the central bank’s bias toward policy tightening.
In Europe, the European Union tightened tariffs on steel imports, while Italy pledged to hold its deficit at 3%. At the same time, calls grew louder for the euro to play a stronger role in global trade and finance.
Source: Reuters
