Latest Finance-Economy News
S&P Global Reports Net Positive Rating Activity with Sector Divergence
Last week showed a net positive credit rating trend as downgrades declined. Notably, U.S.-based power company Vistra Corp was upgraded, signaling sector-specific gains amid mixed credit dynamics .
Key Economic Events to Watch: Fed and BoC Rate Decisions, ECB Speech
This week features crucial macro events affecting global financial markets: U.S. November JOLTS job openings, Bank of Canada rate decision expected to hold at 2.25%, ECB President Lagarde speech, Federal Reserve rate decision, and U.S. trade balance & crude oil data . These will influence currencies, equities, and bonds with possible increased volatility.
China Reports Record Trade Surplus and Rising Foreign Exchange Reserves
China posted a November trade surplus of USD 112 billion, pushing the January-November 2025 total surplus to an unprecedented USD 1 trillion. Foreign exchange reserves also grew by USD 3 billion to USD 3.346 trillion, the highest since 2015, amid a weakening U.S. dollar environment .
U.S. Personal Spending and Consumer Sentiment Show Signs of Resilience
September 2025 U.S. personal spending rose 0.3%, particularly in services like healthcare and housing. The University of Michigan Consumer Sentiment Index improved to 53.3 in December from 51 in November, indicating better personal finance expectations despite inflation concerns .
Federal Reserve Expected to Cut Interest Rates by 25 Basis Points This Week
Currently at 3.75%-4.00%, the fed funds rate is likely to be reduced to 3.50%-3.75% in December, marking the third cut in 2025. The Fed aims to balance moderating economic growth and rising unemployment while managing inflation, signaling a careful monetary easing approach .
U.S. Economy Projected to Achieve 3% Growth in 2025
Despite a protracted government shutdown earlier this year, Treasury Secretary Scott Bessent expects the U.S. economy to finish 2025 with 3% real GDP growth, reflecting resilience amid challenges .
US Stock Market Valuations Show Modest Discounts With Value Sectors Leading
US stock markets trade at a modest 3% discount to fair value, with value and small-cap stocks outperforming growth in November. Healthcare and communications sectors saw the largest fair value adjustments, signaling potential investment opportunities despite some sector overvaluations like consumer-defensive .
German Bunds Reach Highest Levels Since March; Commodity Prices Stable
German Bund yields are approaching new highs for the year, while crude oil prices edge up and gold markets remain rangebound. Currency moves include a softer USD and stronger CAD following Canadian employment data .
OECD Forecasts Global GDP Growth Acceleration in 2027
The Organisation for Economic Co-operation and Development projects global GDP growth to increase to 3.1% in 2027 from an estimated 2.9% in 2026, suggesting an improving medium-term global economic outlook .
Market Brace for Potentially Sharp Moves from Upcoming Economic Data Releases
The week's central themes encompass central bank policy shifts, labor market dynamics, inflation trends, and global trade imbalances. These factors may cause volatility in FX markets, U.S. Treasuries, and commodity prices as highlighted by key upcoming data and speeches .