BOJ Governor Ueda Highlights Uncertainty Over Future Interest Rate Hikes 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
IMF Deputy Dan Katz Visits China as Key Economic Review Nears 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Austria’s AA Credit Rating Affirmed as Fitch Highlights Stable Outlook 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
U.S. Stocks Rise as Cooler Inflation Boosts Hopes for Fed Rate Cut 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
U.S. Stocks End Week Higher as Markets Anticipate Fed Rate Cut 
Spain’s Industrial Output Records Steady Growth in October Amid Revised September Figures 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Australia’s economy underperformed expectations in Q1 2025, with GDP rising just 1.3% year-on-year, according to the Australian Bureau of Statistics. The figure was below the forecasted 1.5% and matched the growth seen in the previous quarter. On a quarterly basis, GDP rose only 0.2%, trailing the anticipated 0.4% and marking a slowdown from Q4’s 0.6% increase.
Several factors contributed to the weak performance. Domestic spending remained soft, with household consumption growing more slowly than before. Public sector spending was largely flat, offering little support to growth. Additionally, extreme weather—cyclones and wildfires—negatively impacted key sectors such as mining, tourism, and shipping.
Exports were another major drag. Disruptions caused by weather were compounded by trade tensions between the U.S. and China, two of Australia’s largest export markets. These issues were flagged earlier this week by poor current account figures and weak contributions from net exports. Businesses also reported a decline in gross operating profits.
Although tensions between Washington and Beijing began easing in May, which may support a stronger Q2 rebound, the Reserve Bank of Australia (RBA) remains cautious. In its May meeting, the RBA warned of slower economic growth amid persistent global trade uncertainty.
The sluggish Q1 performance increases the likelihood of further monetary easing. The RBA has already implemented 50 basis points in rate cuts this year, and continued economic softness could prompt additional action to support growth.
Despite the current slowdown, economists still expect a gradual recovery in 2025, driven by improved global conditions and potential policy support. However, near-term risks remain elevated, particularly in trade and weather-related disruptions.
