Most Asian stocks slid on Thursday as investors weighed the economic impact of Trump’s second presidency , particularly his promise of increased tariffs . In response, the dollar climbed , adding over 1% on Wednesday. Major indices fell in China, Australia, and South Korea , while Japan showed mixed results. This followed a record surge in the S&P 500, which climbed 2.5% on Wednesday, marking its best post-election day ever, with the Nasdaq 100 up by 2.7% . Many expect the Federal Reserve (Fed) to cut interest rates today, a move closely watched by global markets. US stock gains largely reflect expectations of Trump’s pro-business agenda , centered on tax cuts and lighter regulations , which could potentially bolster corporate profits. However, Treasury yields jumped 16 basis points as Trump’s fiscal and tariff plans are predicted to fuel inflation, complicating the Fed’s efforts to reduce borrowing costs. In China, the CSI 300 Index fell by 1% , marking its second consecutive d
The eurozone's private sector failed to grow for the second consecutive month in October, as Germany and France — the bloc’s two largest economies — weighed on overall output, with no clear signs of recovery.
The composite Purchasing Managers' Index (PMI), published by S&P Global, edged up slightly to 49.7 in October, from 49.6 in September, remaining below the 50 threshold that indicates contraction. This reading aligns with analysts' expectations and highlights ongoing concerns about the eurozone's economic health.
Germany’s economy showed a slight improvement in its PMI, but continued struggles in France dragged down the overall region. German industrial giants are grappling with higher energy costs and reduced demand from China, while France's composite PMI slipped further to 47.3, indicating worsening conditions.
Despite small gains in the services sector, the eurozone remains stuck, with manufacturing output continuing to slump. Economists are warning of a potential sub-par expansion, which could dampen efforts to control inflation.
The European Central Bank (ECB), having reduced interest rates for the third time this year, is closely monitoring the situation. ECB officials expressed concern that weak growth may lead to disinflation, potentially bringing inflation below the bank's 2% target.
As firms in the euro area cut back on staffing and deal with fewer new orders, analysts are watching to see whether higher wages combined with falling inflation might eventually stimulate consumer spending and provide relief to the struggling services sector.
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