Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Fed Meeting Sparks Division as Markets Brace for Possible Rate Cut 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Vietnam’s November Trade Sees Monthly Decline but Strong Year-on-Year Growth 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Trump Meets Mexico and Canada Leaders After 2026 World Cup Draw Amid USMCA Tensions 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Rising government debt is sparking market concern across major economies, with the U.S., Japan, and the U.K. under increased investor scrutiny. Moody’s recent downgrade of the U.S.'s last AAA rating and weak demand in Japanese bond auctions highlight mounting fiscal risks.
The U.S. is facing pressure after April’s bond selloff and a proposed $3.3 trillion debt increase from President Trump’s tax and spending bill. While the U.S. dollar’s reserve status offers some buffer, JPMorgan CEO Jamie Dimon warned of cracks in the bond market. Authorities are expected to cap 10-year Treasury yields near 4.5%, with regulatory changes possibly boosting bank participation in Treasury markets.
Japan, long seen as resilient despite a massive debt load over 200% of GDP, is seeing that narrative shift. Yields on long-term bonds surged following the worst 20-year auction in over a decade. The Bank of Japan’s reduced bond buying and declining interest from pension funds are key concerns. Prime Minister Shigeru Ishiba’s push for spending and tax cuts adds to fiscal pressure.
The U.K., with debt near 100% of GDP, remains exposed to global selloffs. Finance Minister Rachel Reeves is set to unveil a multi-year spending plan amid rising borrowing costs. The IMF urges fiscal discipline, and analysts suggest ending Bank of England bond sales could support the market.
France has seen a drop in its bond risk premium, but long-term debt worries persist. A deficit-reduction roadmap due in July may face political resistance. Meanwhile, Italy has improved its credit standing with a sharply reduced budget deficit, boosting investor confidence. The Italy-Germany bond yield gap is near its narrowest in years, signaling relative stability.
These developments underline rising global debt risks and shifting market sentiment.
