Latest Finance-Economy News
US Q3 GDP Expands 4.3%, Beating Expectations
The US economy grew at an annualized 4.3% in Q3 2025, up from 3.8% in Q2, driven by strong consumer spending and industrial production up 2.5% YoY. This resilience offsets softening labor market signals, though inflation remains sticky per GDP deflator and consumer surveys.
Wealthy Americans fueled much of the spending, with top 10% outpacing others.
India's Forex Reserves Rise to $693 Billion
India's foreign exchange reserves increased by $4.36 billion to $693.32 billion, bolstering external stability. Core infrastructure sectors expanded 1.8% YoY in November, signaling recovery, while RBI plans ₹2.90 lakh crore liquidity infusion.
SEBI reforms and infrastructure pushes like metro corridors support long-term growth.
China Industrial Profits Plunge Amid Deflation
China's industrial profits fell sharply in November, nearly erasing 2025 gains due to weak demand and deflation pressures. Beijing ramps up curbs on over-investment as property sector crisis persists into fifth year.
Housing voucher programs expand to counter rising inventories and risks at developers like China Vanke.
US Consumer Confidence Deteriorates in December
US consumer confidence dropped amid job and income anxieties, signaling potential spending moderation post-Q3 surge. University of Michigan survey shows 46% of households cite high prices for poor finances.
This aligns with softer labor data influencing Fed policy expectations.
Trump Plans Tariffs on Chinese Semiconductors
President Trump's administration announced tariffs on Chinese chip imports due to Beijing's market dominance, delayed until 2027. US firms front-loaded purchases, softening tariff impacts on Europe via AI-driven investments.
This sparks debate on Europe's growth reforms amid geopolitical shifts.
Global Growth Resilient, IMF Ups 2025 Forecast
IMF raised 2025 global growth to 3.2%, citing trade growth, low unemployment, and supply chain adaptations to US tariffs. Emerging markets, now 40% of trade, strengthened ties via BRICS, China-ASEAN FTA 3.0, and African deals.
UNCTAD projects 7% global trade growth, led by South-South flows.
US Dollar Weakens as Global Data Outperforms
US Dollar Index fell ~10% in 2025, with DXY at 98 amid Fed's QT end and Treasury buybacks. Citigroup Economic Surprise Index hit 20-month high of 26.80, boosting EUR, AUD, JPY outlooks for 2026.
Policy divergence and fiscal fears drove H1 dollar drop of 11.5%.
FOMC Minutes and Jobless Claims Key This Week
Fed releases December FOMC minutes on Dec 30, eyed for rate cut clues after 25bps cut. Initial jobless claims on Dec 31 expected at 215k, near historic lows despite holiday volatility risks.
Strong labor supports growth but influences Fed path.
Oil Prices Climb on Russia-Ukraine Energy Strikes
Oil edged higher in Asian trading after Russia hit Ukraine's Kherson heating plant and Ukraine targeted Russian refinery. This darkens peace hopes, supporting recovery from prior pressures amid geopolitical risks.
Russia Faces Banking Crisis Risk from Revenue Shortfall
Russian official warns of banking crisis amid nonpayments and 50% drop in December energy revenue. Moscow taps sovereign fund, hikes taxes, keeps high rates due to inflation and tight labor.
This exacerbates economic pressures from sanctions and conflicts.
Markets Hit Records: Stocks, Gold Surge End-2025
US stocks, gold, platinum, silver reached record highs in holiday-shortened week; Bitcoin below $90k. Bond yields dipped initially, dollar softened, oil recovered.
AI capital spending bolsters US growth narrative.