Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Dollar Weakens Ahead of Expected Federal Reserve Rate Cut 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
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 
BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
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 
The U.S. economy continues to outperform expectations, showing remarkable resilience under President Donald Trump’s renewed administration. According to Neil Shearing, Group Chief Economist at Capital Economics, the U.S. expanded by an estimated 0.9% quarter on quarter—nearly 4% annualized—in Q3 2025. In stark contrast, eurozone growth lagged at a mere 0.1–0.2% over the same period.
Earlier forecasts predicted that Trump’s trade barriers, tighter immigration policies, and policy volatility would hinder U.S. growth, while Europe was expected to rebound through fiscal expansion in Germany. However, Shearing notes that optimism about Europe’s recovery was misplaced, with Berlin’s fiscal stimulus delayed until late 2026 and much of its spending offset by rising pension and healthcare costs.
Europe’s stagnation is now seen as structural rather than cyclical. Germany’s industrial base continues to contract following the energy crisis triggered by the war in Ukraine, and China’s transition from a key export market to a direct competitor has deepened challenges. France, meanwhile, faces fiscal tightening pressures, further restricting regional flexibility.
Despite ongoing trade tensions, tariffs, and even a government shutdown, the U.S. economy has maintained momentum. Headline inflation holds steady around 3%, while productivity in the non-financial corporate sector has surged roughly 3.5% year on year. This improvement is fueled by a sharp rise in investment—technology hardware spending is up nearly 20% and software investment by 10%.
Shearing attributes this productivity boom to artificial intelligence (AI) adoption and digital transformation, which are giving the U.S. a unique competitive edge. Capital Economics projects business investment to grow 4.7% in 2026 and 5.2% in 2027, reinforcing America’s lead in tech-driven growth.
As Europe remains sluggish, the U.S. stands as a global outlier—its innovation, AI readiness, and productivity gains continuing to power economic expansion despite policy headwinds.
