Latest Industry Trends News
Global Growth Slows to 2.9% in 2026 per OECD
The OECD projects global economic growth decelerating from 3.2% in 2025 to 2.9% in 2026, before rebounding to 3.1% in 2027. This outlook reflects a supportive macro backdrop amid rising geopolitical risks, with markets maintaining early 2026 momentum.
Investors are advised to consider multiple scenarios including repricing risks from AI valuations or debt concerns.
European Cyclicals Poised for Growth in 2026
Cyclical stocks in Europe are favored due to expected public investment in infrastructure and defense amid economic expansion. Factors like a weaker USD, AI supply chain exposure, and improving earnings support this trend.
Europe's stimulus measures position cyclicals to thrive.
Emerging Markets and Asia Lead Equity Momentum
Emerging markets are regaining strength, with Asia topping the list of equity trends for 2026. This shift comes as investors diversify amid global uncertainties.
Regional dynamics favor renewed momentum in these areas.
Healthcare Emerges as Top Defensive Sector
Healthcare is appealing for its high visibility on earnings, growing cash flows, and independence from GDP growth or hyperscaler spending. Investor nervousness over AI monetization has boosted defensives since late 2025.
The sector offers defensive qualities amid market concentration in AI.
AI and Hyperscalers Remain Key Market Drivers
AI continues to drive equities, with cloud computing, hardware, software, data centers, and cybersecurity as winning themes from 2025 into 2026. Valuations are high but not exuberant, far from dot-com extremes.
Nvidia's earnings are critical, with a potential miss risking AI stock corrections.
Clean Energy Accelerates Despite Challenges
Clean energy remains competitive with improving profitability in solar, wind, and storage due to falling costs and grid integration. The energy transition is accelerating globally, benefiting Europe most.
Renewables offer long-term structural opportunities amid policy support outside the US.
US Tariffs Peak, Impacting Employment
Tariffs caused manufacturing to shed 72,000 jobs in late 2025, with uncertainty leading to hiring freezes. Employment is expected to firm in 2026, stabilizing unemployment at 4.5%, aided by fiscal stimulus and tariff clarity.
AI-driven productivity may ease pricing pressures, though data centers boost energy costs.
New Economic Nationalism Reshapes Industries
The US's interventionist strategy is going global, fusing economic policy with dealmaking to alter state-market relations. This influences industrial strategies worldwide in 2026.
Critical minerals are prioritized as security risks amid China's export controls.
EU-China Tensions Escalate Over Overcapacity
Europe faces fallout from Chinese overcapacity in EVs, wind, solar, and semiconductors, prompting potential trade measures. Political focus broadens, colliding with Europe's fragmented will.
This heightens supply chain risks for key industries.
US Economy Grows Above Potential at 2.9%
US GDP is forecast to expand by 2.9% in 2026, driven by AI-optimism, high stock valuations, and wealth effects despite tariff shocks. This masks K-shaped growth favoring the wealthy.
Productivity gains support resilience.
Trump-Xi Summits Shape Tech and Trade
Up to four US-China leader summits in 2026 will address tariffs, rare earths, tech supply chains, and geopolitics. October's tariff truce leaves structural issues like tech restrictions unresolved.
Outcomes could determine trade policy direction.
Commodities Attractive Amid Geopolitical Risks
Commodities benefit from infrastructure, energy security, and supply constraints, with gold as a safe haven. Critical mineral alliances rise to counter China dominance.
Defense spending boosts related sectors.