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 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
China Urged to Prioritize Economy Over Territorial Ambitions, Says Taiwan’s President Lai 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
China’s Services Sector Posts Slowest Growth in Five Months as Demand Softens 
European Stocks Rise as Markets Await Key U.S. Inflation Data 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Australia’s Economic Growth Slows in Q3 Despite Strong Investment Activity 
Oil Prices Hold Steady as Ukraine Tensions and Fed Cut Expectations Support Market 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
China’s economic growth likely slowed in the second quarter of 2025 as trade tensions and the prolonged property downturn weighed on demand, intensifying pressure on policymakers to step up stimulus efforts. According to a Reuters poll, China’s GDP is expected to have grown 5.1% year-on-year between April and June, down from 5.4% in Q1. While still in line with the official annual growth target of around 5%, the projected slowdown signals rising headwinds for the world’s second-largest economy.
Despite avoiding a sharp downturn so far, thanks to a fragile U.S.-China tariff truce and prior stimulus measures, concerns are mounting about a weaker second half. Morgan Stanley analysts warn that growth could drop to 4.5% or lower in Q3 due to declining exports, deflationary pressures, and the impact of U.S. tariffs. A supplementary fiscal package worth 0.5–1 trillion yuan ($70–140 billion) is anticipated by late Q3 to support growth.
June trade data showed a brief recovery in exports and imports as manufacturers raced to benefit from the current truce before new tariffs take effect in August. However, industrial output and retail sales are expected to show signs of cooling. On a quarterly basis, Q2 GDP is projected to have grown 0.9%, slowing from 1.2% in Q1.
Looking ahead, China’s GDP growth is forecast to ease to 4.6% in 2025 and further to 4.2% in 2026. Markets are now eyeing the upcoming July Politburo meeting for possible stimulus announcements. Analysts expect minor rate cuts later this year, including to the seven-day reverse repo and the loan prime rate. However, experts caution that monetary easing alone may not curb deflation, prompting calls for deeper supply-side reforms to stabilize growth and jobs.
