Asian Currencies Slip as Dollar Holds Firm, Yen Near Four-Decade Low Ahead of Fed, Jobs Data 
Asian Currencies Stay Range-Bound as Investors Eye China Data, RBNZ Outlook and U.S.-Iran Ceasefire 
BOJ Raises Interest Rates to 1% as Inflation Pressures Persist 
Indonesia Central Bank to Draft New Regulations After Expanded Economic Growth Mandate 
Asian Stocks Mixed as South Korea Slides on Profit-Taking, Japan and China Gain on Strong Factory Data 
BOJ Raises Interest Rates to 31-Year High, Signals Strong Focus on Inflation Risks 
Gold Price Hits Annual Low as Fed Rate Hike Bets and Sticky Inflation Weigh on Bullion 
Argentina Economy Shrinks 1.5% in April, Recovery Under Milei Loses Momentum 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
RBA Minutes Signal Australia Central Bank Remains Ready to Raise Interest Rates if Inflation Persists 
Chip Stocks Rally as Samsung and SK Hynix’s $1.3 Trillion Investment Plan Boosts AI Optimism 
Canada Grants C$7 Million to Greenland Molybdenum Mine to Strengthen Critical Minerals Supply 
UN Chief Urges Nations to Close $100 Million UNRWA Funding Gap 
Oil Prices Slip as U.S.-Iran Peace Talks and Strait of Hormuz Risks Keep Markets on Edge 
China Manufacturing PMI Edges Higher in June as Exports and AI Investment Boost Growth 
China Sets 1.25% Overnight Reverse Repo Rate Below Market Expectations 
Germany’s economy has shown unexpected resilience, with Deutsche Bank Research forecasting 0.3% full-year growth, contrary to market expectations of stagnation. According to the Federal Statistical Office, Germany's GDP rose 0.4% in Q1 2025, marking a potential turnaround after prolonged economic weakness.
A surge in March exports—particularly in automobiles and pharmaceuticals—played a key role. Deutsche Bank analysts noted that this spike likely reflected companies accelerating shipments ahead of potential tariff hikes. More importantly, domestic demand showed strength: private consumption grew 0.5%, while investment rose 0.9%. Construction activity also expanded for a second straight quarter, indicating ongoing recovery.
The only drag on domestic demand was public consumption, which dipped 0.3%, attributed to the federal government’s provisional budget. Deutsche Bank expects this to reverse once a formal budget is passed, potentially leading to increased fiscal spending later in the year.
Business sentiment indicators provided mixed signals. While the composite Purchasing Managers’ Index dipped below 50, the Ifo Business Climate Index has risen steadily since January, suggesting optimism in manufacturing. Conversations with corporate clients also revealed improved sentiment under Germany’s new government, despite global trade tensions.
Looking ahead, Deutsche Bank expects Q2 growth between 0.1% and 0.2%, supported by solid domestic consumption and investment. However, risks remain: potential U.S. tariff increases in July could dampen momentum, and Q3 is expected to be fragile. By Q4, with a likely expansionary fiscal plan for 2026 and normalized household savings, stronger consumption and investment may materialize.
Deutsche Bank argues that consensus forecasts are too pessimistic, saying Germany’s economic fundamentals are improving more than widely assumed. They believe the outlook is turning positive, even as external uncertainties persist.
