Latest Finance-Economy News
Federal Reserve signals imminent rate cuts; markets price eased policy path
Minutes and recent comments show the Fed is increasingly confident inflation is cooling and financial conditions will allow rate cuts in 2026, pushing Treasury yields lower and equity risk assets higher. Market commentary warns investors the rally may be fragile if growth weakens rather than a true 'soft landing'
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US jobs and consumer data point to cooling but not collapsing growth
Recent U.S. labor and inflation indicators show slowing job creation and easing inflation pressures, with core inflation moving toward the Fed target range and mixed payrolls keeping recession risk debated among analysts. The BEA and economic calendars signal upcoming GDP and jobs releases that could materially affect policy expectations
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China’s recovery remains uneven; property sector weakness persists
Chinese activity data continue to show a patchy recovery — industrial output and exports supporting growth while retail and property markets remain weak, raising downside risks to regional commodity demand. Analysts caution persistent property stress could slow spillovers to global trade and prices
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Bank of England cuts Bank Rate 25 bps amid moderating inflation
The BoE reduced its policy rate by 25 basis points to 3.75% after headline inflation slowed, a move that shifted gilt yields and sterling dynamics and prompted market reassessment of BoE forward guidance. Commentary highlights the trade-off between supporting growth and re-anchoring inflation expectations
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France fails to pass 2026 budget before year-end; fiscal uncertainty rises
French lawmakers did not reach a compromise on the 2026 state budget, leaving Paris without an approved plan and raising near-term fiscal uncertainty and potential bond market scrutiny over the 2026 deficit outlook. The impasse reflects deep political splits over spending and tax direction ahead of planned measures
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UAE and sovereign funds accelerate AI and tech investments
Major sovereign investors including the UAE have committed large-scale funding into AI and tech — reports cite commitments and fundraising efforts (OpenAI and others) in the tens of billions, boosting equity demand for AI-related megacaps. Market strategists say sovereign inflows are a key underpinning of year-end rallies in US equities
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Oil and energy markets respond to geopolitical and demand signals
Energy prices moved on a mix of supply geopolitics and softer demand outlooks; traders balanced OPEC+ supply discipline against slower global growth, keeping oil volatility elevated into year-end reports. Shifts in energy prices are feeding through to inflation forecasts and EM fiscal balances
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Global equity caution: technicals and internals warn of near-term pullback
Market technicians and advisory pieces note breadth deterioration and historical patterns that often precede weak returns after strong rallies, urging caution despite year-end 'Santa rally' flows. Analysts emphasize monitoring employment and retail data for confirmation
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US trade deficit narrows as exports pick up in recent months
BEA data show the U.S. goods and services trade deficit narrowed in recent monthly data as exports increased more than imports, a factor that modestly supports GDP growth and dollar dynamics ahead of upcoming releases. The trade swing is influencing economists’ growth revisions for late 2025
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Major corporate deal activity and buyout fundraising intensify
Reports highlight renewed M&A and private-capital moves — large fundraising and sovereign commitments to private markets are increasing dry powder and deal activity, particularly in tech and energy transition assets. Observers note this could support valuations but also raise integration and leverage risks
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Emerging markets face divergent paths: India resilient, some EME vulnerabilities
India shows resilience with narrowing trade deficit, rising FX reserves and moderating wholesale inflation, while other EMs face weaker demand, currency pressures, and fiscal strains — creating a mixed backdrop for capital flows. Policy room differences mean divergent market responses across EMs
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