Latest Industry Trends News
US Leads AI-Driven Economic Growth with 0.5% GDP Boost in 2025
AI technologies contributed approximately 0.5 percentage points to U.S. GDP growth in the first half of 2025, with momentum expected to continue driving above-consensus growth of 2.5% into 2026. Europe lags behind due to slower AI adoption, forecasting more modest growth of 1.0-1.2% for major economies.
Federal Reserve Anticipated to Cut Rates for Third Consecutive Time
The Federal Reserve is expected to implement a 25 basis point rate cut in December 2025 amid softening inflation and cautious labor market signals. Market expectations include limited further easing into early 2026, with investor optimism around rate cuts supporting equities.
Bank of Japan Prepares for Rate Normalization as Yields Rise
Japan’s government bond yields have reached multi-year highs, setting the stage for the Bank of Japan to raise rates by an estimated 21 to 40 basis points, marking a shift from its ultra-loose policies and likely influencing global risk sentiment.
Europe’s Economy Shows Resilience Despite Tariffs and Inflation Pressures
The European economy has weathered 2025 tariff-related disruptions better than expected, supported by a strong labor market and low borrowing costs. Eurozone inflation slightly increased to 2.2%, reinforcing the European Central Bank's decision to maintain current borrowing costs.
Mixed US Manufacturing and Service Sector Data Reflect Economic Unevenness
U.S. manufacturing PMI remains in contraction at 48.2 due to weak new orders and employment declines, whereas the services sector expanded with a PMI of 52.6, indicating stronger business activity but ongoing soft employment growth.
Investor Strategies Shift Towards Defensive Sectors Amid Market Volatility
Faced with macroeconomic uncertainty and potential market shocks from central bank policies, investors are advised to allocate cash reserves and shift towards defensive sectors such as utilities, healthcare, and consumer staples backed by AI-driven liquidity models.
Trade and Investment in AI Drive Positive Global Economic Momentum
Strong investment in AI is a key driver for the better-than-expected global economic performance in late 2025, offsetting some negative impacts from tariffs and geopolitical tensions.
Elevated Trading Volumes and Volatility Reflect Cautious Market Sentiment
December 2025 has seen increased trading volumes and volatility amid unresolved inflation concerns and unclear policy directions, complicating seasonal trading strategies with heightened investor caution.
Canadian Economy Surpasses Expectations with Unemployment Rate Drop
Canada’s unemployment unexpectedly fell from 6.9% to 6.5%, signaling a robust labor market and stronger-than-anticipated economic activity, contrasting with weaker employment data from the U.S.
Precious Metals Rally As Inflation Outlook Softens
Silver reached all-time high prices and gold showed strong gains fueled by a softer US core PCE inflation reading and expectations of Fed rate cuts, contributing to bullish sentiment in commodities.