Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Australia’s economy underperformed expectations in Q1 2025, with GDP rising just 1.3% year-on-year, according to the Australian Bureau of Statistics. The figure was below the forecasted 1.5% and matched the growth seen in the previous quarter. On a quarterly basis, GDP rose only 0.2%, trailing the anticipated 0.4% and marking a slowdown from Q4’s 0.6% increase.
Several factors contributed to the weak performance. Domestic spending remained soft, with household consumption growing more slowly than before. Public sector spending was largely flat, offering little support to growth. Additionally, extreme weather—cyclones and wildfires—negatively impacted key sectors such as mining, tourism, and shipping.
Exports were another major drag. Disruptions caused by weather were compounded by trade tensions between the U.S. and China, two of Australia’s largest export markets. These issues were flagged earlier this week by poor current account figures and weak contributions from net exports. Businesses also reported a decline in gross operating profits.
Although tensions between Washington and Beijing began easing in May, which may support a stronger Q2 rebound, the Reserve Bank of Australia (RBA) remains cautious. In its May meeting, the RBA warned of slower economic growth amid persistent global trade uncertainty.
The sluggish Q1 performance increases the likelihood of further monetary easing. The RBA has already implemented 50 basis points in rate cuts this year, and continued economic softness could prompt additional action to support growth.
Despite the current slowdown, economists still expect a gradual recovery in 2025, driven by improved global conditions and potential policy support. However, near-term risks remain elevated, particularly in trade and weather-related disruptions.
