Asia’s IPO Market Set for Strong Growth as China and India Drive Investor Diversification 
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Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Gold Prices Steady as Markets Await Key U.S. Data and Expected Fed Rate Cut 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Japan’s Nikkei Drops as Markets Await Key U.S. Inflation Data 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
Asian Currencies Steady as Rupee Hits Record Low Amid Fed Rate Cut Bets 
Asian Markets Stabilize as Wall Street Rebounds and Rate Concerns Ease 
The U.S. economy continues to outperform expectations, showing remarkable resilience under President Donald Trump’s renewed administration. According to Neil Shearing, Group Chief Economist at Capital Economics, the U.S. expanded by an estimated 0.9% quarter on quarter—nearly 4% annualized—in Q3 2025. In stark contrast, eurozone growth lagged at a mere 0.1–0.2% over the same period.
Earlier forecasts predicted that Trump’s trade barriers, tighter immigration policies, and policy volatility would hinder U.S. growth, while Europe was expected to rebound through fiscal expansion in Germany. However, Shearing notes that optimism about Europe’s recovery was misplaced, with Berlin’s fiscal stimulus delayed until late 2026 and much of its spending offset by rising pension and healthcare costs.
Europe’s stagnation is now seen as structural rather than cyclical. Germany’s industrial base continues to contract following the energy crisis triggered by the war in Ukraine, and China’s transition from a key export market to a direct competitor has deepened challenges. France, meanwhile, faces fiscal tightening pressures, further restricting regional flexibility.
Despite ongoing trade tensions, tariffs, and even a government shutdown, the U.S. economy has maintained momentum. Headline inflation holds steady around 3%, while productivity in the non-financial corporate sector has surged roughly 3.5% year on year. This improvement is fueled by a sharp rise in investment—technology hardware spending is up nearly 20% and software investment by 10%.
Shearing attributes this productivity boom to artificial intelligence (AI) adoption and digital transformation, which are giving the U.S. a unique competitive edge. Capital Economics projects business investment to grow 4.7% in 2026 and 5.2% in 2027, reinforcing America’s lead in tech-driven growth.
As Europe remains sluggish, the U.S. stands as a global outlier—its innovation, AI readiness, and productivity gains continuing to power economic expansion despite policy headwinds.
