Global Economy News Briefing For September 9, 2025
(MENAFN- The Rio Times) Global markets on Tuesday reflected diverging signals, with China sliding deeper into deflationary territory, Europe facing industrial unevenness, and Japan showing renewed strength.
China's consumer prices fell 0.4% year-on-year in August, while remaining flat month-on-month, marking the sharpest deflation in recent quarters. Producer prices also contracted 2.9%, continuing pressure on industrial profitability despite a slight improvement from July.
Europe showed a split picture. French industrial output fell 1.1% in July, unwinding June's 3.7% jump. In contrast, Spain posted stronger industrial growth at 2.5% year-on-year, and Italy delivered modest gains of 0.4% month-on-month and 0.9% annually.
German government bond yields fell sharply at auction, with 10-year Bunds at 2.25% versus 2.77% previously, reflecting demand for safe assets. Spain's three-month Letras also priced slightly lower, indicating steady short-term funding.
Japan provided more upbeat news. Machine tool orders surged 8.1% in August after months of stagnation, while the Reuters Tankan index improved to 13 from 9, showing higher business confidence.
A five-year government bond auction cleared at 1.119%, slightly above July, confirming investor appetite remains firm. In emerging markets, South Africa's economy grew 0.8% quarter-on-quarter annualized in Q2, with yearly growth of 0.6%.
Mexico reported August inflation of 3.57% year-on-year, close to forecasts, while core monthly inflation was a moderate 0.22%. South Korea's unemployment rate edged up to 2.6% but remained among the lowest globally.
New Zealand posted stronger migration inflows, with 2,060 permanent arrivals and visitor entries up 2.6%, signaling robust population-driven demand.
Elsewhere, Norway's producer prices fell 3.0% year-on-year in August, underscoring energy and commodity weakness. Switzerland's central bank leadership struck a cautious tone, while Italy and Spain showed resilience through steady industrial gains.
Taken together, the day highlighted global divergence: China's deflation poses risks for trade partners, Europe remains mixed with Germany steady but France softening, and Japan alongside New Zealand offered growth-positive signals.
China's consumer prices fell 0.4% year-on-year in August, while remaining flat month-on-month, marking the sharpest deflation in recent quarters. Producer prices also contracted 2.9%, continuing pressure on industrial profitability despite a slight improvement from July.
Europe showed a split picture. French industrial output fell 1.1% in July, unwinding June's 3.7% jump. In contrast, Spain posted stronger industrial growth at 2.5% year-on-year, and Italy delivered modest gains of 0.4% month-on-month and 0.9% annually.
German government bond yields fell sharply at auction, with 10-year Bunds at 2.25% versus 2.77% previously, reflecting demand for safe assets. Spain's three-month Letras also priced slightly lower, indicating steady short-term funding.
Japan provided more upbeat news. Machine tool orders surged 8.1% in August after months of stagnation, while the Reuters Tankan index improved to 13 from 9, showing higher business confidence.
A five-year government bond auction cleared at 1.119%, slightly above July, confirming investor appetite remains firm. In emerging markets, South Africa's economy grew 0.8% quarter-on-quarter annualized in Q2, with yearly growth of 0.6%.
Mexico reported August inflation of 3.57% year-on-year, close to forecasts, while core monthly inflation was a moderate 0.22%. South Korea's unemployment rate edged up to 2.6% but remained among the lowest globally.
New Zealand posted stronger migration inflows, with 2,060 permanent arrivals and visitor entries up 2.6%, signaling robust population-driven demand.
Elsewhere, Norway's producer prices fell 3.0% year-on-year in August, underscoring energy and commodity weakness. Switzerland's central bank leadership struck a cautious tone, while Italy and Spain showed resilience through steady industrial gains.
Taken together, the day highlighted global divergence: China's deflation poses risks for trade partners, Europe remains mixed with Germany steady but France softening, and Japan alongside New Zealand offered growth-positive signals.
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