China’s Services-Sector Activity Growth Slows

Scott Bessent stated that China is on track to fulfill its commitments regarding US soybean purchases, indicating a positive momentum in agricultural trade relations between the two nations. This follows a series of significant transactions, including China's largest soybean buy from the US in two years, which has buoyed prices and encouraged sales from struggling farmers.

In September, U.S. industrial production increased by 0.1%, recovering from a 0.3% decline in August, according to the Federal Reserve. This modest growth indicates a slight rebound in manufacturing activity, which is crucial for the overall economy.

Maersk has reported an increase in demand from India, indicating that its shipping service connecting India and North America is maintaining consistent weekly departures. This development comes amid growing hopes for a potential trade deal between the U.S. and India.

The dollar has weakened against a basket of currencies and is projected to decline further in the first half of 2026, albeit at a more modest pace than in the current year, according to J.P. Morgan. This trend reflects ongoing volatility in the currency markets, influenced by various economic indicators and investor sentiment.

The European Union (EU) is taking steps to enhance its defenses against economic threats, particularly in light of recent export restrictions imposed by China. This initiative reflects the EU's growing concerns about its reliance on Chinese imports and aims to bolster its economic resilience in a shifting global landscape.

Chief Economist Philip Lane of the European Central Bank (ECB) indicated that a 10% increase in the euro's exchange rate could significantly lower inflation over the next three years, according to the central bank's modeling. This projection aligns with the ECB's ongoing efforts to stabilize the economy amidst fluctuating inflation rates.

Gold and silver prices increased following the ADP private payrolls report, which indicated a loss of 32,000 jobs in November, highlighting a concerning trend in the U.S. labor market. This report has contributed to a positive sentiment in precious metals as investors seek safe-haven assets amid economic uncertainty.

U.S. import prices remained unchanged in September, as reported by the Labor Department, with increases in nonfuel import prices balancing out a decline in fuel import prices. This stability in import prices reflects ongoing economic conditions and consumer demand patterns.