Latest Industry Trends News
China Shock 2.0 Threatens Global Advanced Manufacturing
Goldman Sachs forecasts China's GDP growth accelerating by 0.6% annually, reducing world growth by 0.1% via deindustrialization and crowding out high-tech sectors. China reached a $1 trillion manufacturing trade surplus in 2025 despite US tariffs, impacting Europe with surging cheap imports of robots (up 171%), circuits (up 84%), and cars.
This 'China Shock 2.0' pressures automotive, machinery, and high-tech makers worldwide.
2025 Supply Chains Redefined by Tariff Volatility and Disruptions
2025 saw supply chains tested by US tariff changes, causing cargo frontloading, port congestion, and altered trade lanes. Labor strikes, wildfires, extreme weather, and infrastructure issues disrupted trucking, rail, and aviation reliability.
Businesses shifted to diversification and resilience strategies amid geopolitical shifts and modal changes like air cargo fluctuations.
US DEG Market Declines 4.41% in December on Oversupply
Diethylene Glycol (DEG) prices in the US fell gradually week-on-week, marking a 4.41% overall drop in December 2025. Factors included widening supply-demand gaps, cheap imports, and crude oil volatility.
This reflects broader chemical industry pressures from global oversupply.
Fed's December 2025 Rate Cut Sparks Global Market Rallies
The US Federal Reserve cut rates by 25bps to 3.50%-3.75%, prompting equity rallies, a weaker dollar, and capital flows to emerging markets. Small-cap stocks, real estate, and tech sectors like communication services thrived, while utilities lagged.
Emerging markets like Korea surged 4.6% on non-US tech enthusiasm.
2026 Outlook: Bullish US Equities Led by AI and Tech
J.P. Morgan projects double-digit gains in developed and emerging markets, driven by AI capex, earnings growth, and lower rates. US markets focus on AI profit-makers, healthcare, defense, and mid-caps amid potential K-shaped divergence.
Investors urged to monitor valuations and geopolitics.
Japan Exporters Gain from Weak Yen and Reforms
Structural governance improvements and yen weakness boost Japan's industrials, robotics, and financials in 2026 outlook. Currency depreciation risks persist despite potential rate hikes.
This favors export-oriented manufacturing sectors.
Emerging Markets Asia and India Set to Outperform
EM growth ex-China expected at 3.3% with stabilizing inflation near 3.2% and moderate rate cuts benefiting high-yield countries. India and ASEAN shine in infrastructure, manufacturing, and consumer sectors.
Weak USD supports regional outperformance.
AI Shifts to Profitability Focus Beyond Hype in 2026
Tech earnings engine emphasizes edge AI, automation, and on-device computing over cloud giants. AI supercycle drives capex and expansion in tech, utilities, banking, healthcare, and logistics.
Valuation discipline critical amid market polarization.
Defense and Automation Sectors Surge on Global Tensions
Rising geopolitical tensions elevate defense spending, attracting institutional flows alongside automation themes. Sector risks include regulation and political sensitivities.
This trend aligns with broader security and efficiency pushes.
S&P 500 Earnings Grow 4% with Tech Leading at 29.2%
Overall S&P 500 company earnings rose 4% by late December 2025. Information Technology sector surged 29.2%, while Communication Services also advanced strongly.
This underscores tech's dominance in year-end market performance.
China's Strategy Sustains Export Dominance Over Consumption
China continues low-end manufacturing, restricts tech transfers, and prioritizes exports over domestic consumption boosts. This sustains its trade surplus but drags global high-value manufacturing.
Commodity exporters like US benefit temporarily from raw material demand.