Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
Mexico’s Finance Ministry announced in its 2026 budget proposal that the country’s fiscal deficit is expected to narrow slightly to 4.10% of GDP, down from the projected 4.32% in 2025. The adjustment comes as Latin America’s second-largest economy is forecast to expand between 1.8% and 2.8%, marking an increase of 1.3 percentage points from previous estimates.
The government’s growth outlook is notably more optimistic than international forecasts. The International Monetary Fund (IMF) projects Mexico’s economy to expand by just 1.4% in 2026, while the Bank of Mexico anticipates growth at 1.1%. Inflation, however, is expected to align with central bank targets, with consumer prices forecast to close 2026 at 3.0%.
A significant focus of the budget is on state-owned oil giant Pemex, which continues to struggle under heavy debt. The government plans to allocate 263.5 billion pesos (about $14.14 billion) to help Pemex meet its debt and loan obligations. The move underscores ongoing pressure to stabilize the company’s finances while balancing public spending priorities.
President Claudia Sheinbaum’s administration is also considering trade measures. Following her remarks on possible tariffs against countries without trade agreements, including China, the proposal highlights a review of the “General Import Tax” to foster domestic development, though details remain limited.
In addition, the budget introduces new “healthy taxes” aimed at discouraging the consumption of certain products. These include higher levies on soft drinks, nicotine pouches, and even video games, reflecting a strategy to both raise revenue and promote public health.
The draft budget will now be debated in Congress, where Sheinbaum’s party and its allies hold majorities in both chambers, giving the plan a strong chance of approval.
