Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Germany’s Economic Recovery Slows as Trade Tensions and Rising Costs Weigh on Growth 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Growth continues to disappoint as the recession has deepened its grip on all sectors of the economy. Today's GDP prints for the third quarter showed economic activity contracted by a worse-than-expected -1.7% q/q in Q3, (vs consensus expectations of -1.2%). The Q2 number was revised lower to -2.1% q/q, (vs the earlier -1.9% print released in August).
The biggest drags on growth came from investments and private consumptions, while net exports continued to remain the only positive source of growth due to a weaker BRL.
"We expect investments and private consumption to continue to remain subdued in the quarters ahead as higher rates, the incipient weakening of the labour market, low confidence and worsened terms of trades are pulling the break on activity in these sectors",says Nordea Bank.
The lower than expected GDP print today and the downward revision of Q2 GDP growth lower the expectations for growth this and next year . Economic activity is likely to start recover on only a slow pace towards end 2016, and to pick up somewhat in 2017 as a stabilisation of commodity prices and monetary policy easing will help.
"We believe today's number will increase the pressure on the BRL and amplify the vulnerability of the currency. We expect weakening pressure on the BRL to persist in the near term as weak domestic fundamentals, risks of more rating downgrades, low commodity prices and the approaching Fed hike will keep it under pressure", added Nordea Bank.
