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Stocks jumped Wednesday as trade war fears were overshadowed by comments from Federal Reserve boss Jerome Powell that suggested the bank would cut interest rates again this month.After a volatile couple of days characterised by a fresh flare-up in China-US tensions, investors took the opportunity to jump back into the market and resume a months-long, tech-fuelled rally.Powell has for most of the year walked a fine line between trying to keep a cap on US inflation while also supporting the labour market, even as he faced a barrage of abuse from President Donald Trump for not lowering borrowing costs soon enough.And while price gains continue to outpace the bank’s target pace, a series of weak readings has forced him to turn his focus on jobs, and last month announced the first rate cut since December.And on Tuesday he indicated more were on the way.”In this less dynamic and somewhat softer labour market, the downside risks to employment appear to have risen,” said Powell, adding that longer-term inflation expectations remained aligned with the Fed’s two-percent goal.”Rising downside risks to employment have shifted our assessment of the balance of risks,” he said, adding there was “no risk-free path for policy as we navigate the tension between our employment and inflation goals.”Powell also hinted that monetary policymakers could soon stop reducing the size of its holdings of bonds and other instruments bought in vast quantities during the pandemic to keep borrowing rates low and support the economy.The bank has a dual mandate from Congress to act independently to tackle both inflation and employment.No official jobs data has been published for September because of the US government shutdown, but private sector figures point to a marked slowdown in hiring last month.US markets ended mostly down but well off their morning lows, and Asia was on the front foot.Hong Kong, Tokyo, Taipei and Seoul all climbed more than one percent, while Sydney, Seoul, Singapore and Wellington also advanced.Shanghai rose, with little negative reaction to data showing Chinese consumer prices fell in September, indicating consumer sentiment remains weak.Powell’s remarks helped investors turn from the latest trade salvos between Washington and Beijing, with Trump last week threatening 100-percent tariffs owing to Chinese rate earth measures.While the US president tempered his rhetoric Sunday, China appeared to stoke the row by imposing sanctions on five American subsidiaries of South Korean shipbuilder Hanwha Ocean, accusing them of supporting Washington’s investigation into the shipping industry.Still, there are hopes the row can be defused, with Trump telling reporters at the White House that “we have a fair relationship with China, and I think it’ll be fine. And if it’s not, that’s OK too.””We have a lot of punches being thrown, and we’ve been very successful.”Meanwhile, US Trade Representative Jamieson Greer told CNBC that senior officials had spoken Monday on the rare earth dispute, and gave a broadly upbeat view.”We’ve been pretty successful in finding a path forward with them in the past so we think we’ll be able to work through it,” he said in an interview.  – Key figures at around 0230 GMT -Tokyo – Nikkei 225: UP 1.3 percent at 47,463.31 (break)Hong Kong – Hang Seng Index: UP 1.5 percent at 25,826.42Shanghai – Composite: UP 0.4 percent at 3,881.03Euro/dollar: UP $1.1621 from $1.1604 on TuesdayPound/dollar: UP at $1.3348 from $1.3319Dollar/yen: DOWN at 151.17 yen from 151.74 yenEuro/pound: DOWN at 87.06 pence from 87.13 penceWest Texas Intermediate: FLAT at $58.71 per barrelBrent North Sea Crude: FLAT at $62.40 per barrelNew York – Dow: UP 0.4  percent at 46,270.46 (close)London – FTSE 100: UP 0.1 percent at 9,452.77 (close)

European and US stock markets fell before recovering somewhat as markets weighed trade tensions between Beijing and Washington and digested fresh Federal Reserve commentary.Wall Street indices opened firmly in the red amid the latest back and forth involving the United States and China on trade. But US stocks recovered somewhat following midday remarks from Fed Chair Jerome Powell.Powell’s observation that US payroll gains have “slowed sharply” strengthened confidence the US central bank would cut interest rates later this month.”In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen,” Powell said.While two of the three major US indices still finished in the red, the broad-based S&P 500 shed just 0.2 percent at 6,644.31, about 90 points above its session low.Bourses earlier in Europe had also struggled to get out of the red, while Asian markets suffered losses following Monday’s pullback in the wake of US -China tensions.”There is a whiff of risk aversion about financial markets today,” said Kathleen Brooks, research director at XTB. “The global stock market uptrend is facing a little more resistance on the upside.”Markets were unsettled after China imposed sanctions on five American subsidiaries of South Korean shipbuilder Hanwha Ocean, accusing them of supporting a US government investigation into the shipping industry.In Europe, eyes were on embattled French Prime Minister Sebastien Lecornu as he presented a cost-cutting budget to a divided parliament, with parties on both ends of the political spectrum already trying to topple his government.Paris ended down just 0.2 percent but among individual shares, tire maker Michelin plunged almost nine percent after it revised downward its revenue expectations in North America where its activities have been hit by tariffs. It later recovered to close down 2.6 percent.Earlier, Tokyo slumped more than two percent as the country’s top opposition parties sought to find a unified candidate for prime minister and oust the ruling party from power after the ruling coalition collapsed last week, putting in peril Sanae Takaichi’s bid to become the country’s first woman prime minister.Back in New York, JPMorgan Chase finished down 1.9 percent despite reporting higher profits in results that topped analyst expectations. However, the bank disclosed a $170 million hit from its exposure to Tricolor, a subprime auto lending company that went bankrupt. Goldman Sachs also dropped 2.0 percent after reporting higher profits, but Citigroup jumped 3.9 percent and Wells Fargo surged 7.2 percent. – Key figures at around 2030 GMT -New York – Dow: UP 0.4  percent at 46,270.46 (close)New York – S&P 500: DOWN 0.2 percent at 6,644.31 (close)New York – Nasdaq: DOWN 0.8 percent at 22,521.70 (close) London – FTSE 100: UP 0.1 percent at 9,452.77 points (close)Paris – CAC 40: DOWN 0.2 percent at 7,919.62 (close)Frankfurt – DAX: DOWN 0.6 percent at 24,236.94 (close)Tokyo – Nikkei 225: DOWN 2.6 percent at 46,847.32 (close)Hong Kong – Hang Seng Index: DOWN 1.7 percent at 25,441.35 (close)Shanghai – Composite: DOWN 0.6 percent at 3,865.23 (close)Euro/dollar: UP $1.1604 from $1.1570 on MondayPound/dollar: DOWN at $1.3319 from $1.3333Dollar/yen: DOWN at 151.74 yen from 152.28 yenEuro/pound: UP at 87.13 pence from 86.77 penceBrent North Sea Crude: DOWN 1.5 percent at $62.39 per barrelWest Texas Intermediate: DOWN 1.3 percent at $58.70 per barrel

Brazil, India, Italy and Japan vowed Tuesday to quadruple their production and consumption of renewable fuels, hoping other countries will join the pledge during UN climate talks in November.”We hope to have a good number of signatories” by COP30, Brazilian foreign ministry official Joao Marcos Paes Leme told reporters in the capital Brasilia.”Other European countries are also interested,” he added.Paes Leme was speaking on the sidelines of a meeting of representatives from 67 countries in the run up to COP30 climate talks in the Amazon city of Belem next month.The pledge involves quadrupling the production of sustainable fuels such as biofuels, hydrogen and some synthetic fuels by 2035, compared to 2024 levels.Paes Leme noted that these fuels can be used to replace planet-harming fossil fuels in sectors such as aviation, maritime transport, or the cement and steel industries.”These are sectors where decarbonization is difficult,” because electrical energy has not yet succeeded in replacing fossil fuels.Sustainable fuels are already used in these industries “but they are not produced in sufficient quantities,” he said.The massive use of coal, oil, and fossil gas for energy since the industrial revolution is the primary driver of human-induced global warming.The commitment to sustainable fuels “is something we love to hear,” said Francesco La Camera, director-general of the International Renewable Energy Agency (IRENA). However, he warned that some biofuels can be harmful due to the vast expanses of land required to produce raw materials such as sugarcane, soy, or corn. “We have to be serious about what we say: sustainable fuel also means sustainable from the perspective of land use.”For the first time, the world pledged to “transition away” from fossil fuels at COP28 in Dubai in 2023.However many of the largest fossil-fuel producing nations — including Brazil — are planning to increase production in the coming years.

US President Donald Trump slammed China’s halt of American soybean purchases as an “economically hostile act,” warning Tuesday that his country could in turn stop buying cooking oil from the world’s second-biggest economy.”We are considering terminating business with China having to do with Cooking Oil, and other elements of Trade, as retribution,” Trump said on his Truth Social platform.His comments online, however, came shortly after he appeared to soothe rising temperatures between Washington and Beijing.”We have a fair relationship with China, and I think it’ll be fine. And if it’s not, that’s okay too,” Trump told reporters at the White House.Trade tensions between the world’s two biggest economies have reignited in Trump’s second presidency, with tit-for-tat duties reaching triple-digit levels at one point.In an interview with the Financial Times on Monday, US Treasury Secretary Scott Bessent slammed Beijing, accusing it of seeking to harm the global economy following China’s sweeping new export controls in the strategic field of rare earths.Trump, in turn, maintained that Washington has “to be careful with China.””I have a great relationship with President Xi (Jinping), but sometimes it gets testy, because China likes to take advantage of people,” Trump said. “Where the punches are thrown, you got to put up the blocks.”On Truth Social, Trump stressed that China’s halt in purchases was causing difficulty for US soybean farmers.US imports of animal fats, greases and processed oils, including those used cooking oil, have skyrocketed in recent years — driven by rising domestic production of biomass-based diesel, according to government data.- China tariff threat -While tensions between Washington and Beijing have de-escalated from their peak, the truce remains shaky.After Beijing imposed fresh controls on the export of rare earth technologies and items, Trump said he would roll out an additional 100-percent tariff on the country’s goods from November 1.And US Trade Representative Jamieson Greer told CNBC separately that this timeline could be accelerated.”A lot depends on what the Chinese do,” Greer said in the interview, adding that Beijing had “chosen to make this major escalation.”China is the world’s leading producer of the minerals used to make magnets crucial to the auto, electronic and defense industries.Bessent told the Financial Times: “This is a sign of how weak their economy is, and they want to pull everybody else down with them.”Last week, Trump also threatened to scrap a planned meeting with Xi at the Asia-Pacific Economic Cooperation (APEC) summit starting later this month.China over the weekend accused the United States of “double standards” after Trump’s threat of further tariffs. On Tuesday, China said it was ready to “fight to the end” in a trade war with the United States.

Robust dealmaking activity and strong trading results helped boost US bank earnings Tuesday despite lingering worries about a softening job market and a potentially overvalued stock market.Profits rose in the third quarter at JPMorgan Chase and three other US lending giants, reflecting strength in core business areas and the still-healthy condition of many consumers even after a lengthy stretch of persistently high costs that have stretched low-income households.At JPMorgan, profits were $14.4 billion, up 12 percent from the year-ago level, with revenues of $46.4 billion, up 9 percent.The bank, the biggest US lender in terms of assets, reported somewhat higher credit costs in the quarter as it disclosed details about a $170 million hit from the bankruptcy of Tricolor, a subprime auto lender. But JPMorgan executives reiterated that consumers remain generally “resilient” and mostly on time with credit card payments, a tone echoed by other large banks. “We’ve been waiting for the so-called consumer recession, but it doesn’t materialize,” said investment banker and author Christopher Whalen of Whalen Global Advisors.The large banks “don’t do business with subprime” customers, said Whalen, who suspects more troubles involving banks’ corporate lending will surface in time. – Stock market ‘frothiness’ -More bank earnings will be released in the coming days, but Tuesday’s batch showed increases all around with Citigroup profits rising 16 percent to $3.8 billion, Goldman Sachs up 39 percent to $3.9 billion and Wells Fargo up 9 percent to $5.6 billion.Goldman Sachs pointed to its role as the “exclusive advisor” to Electronic Arts in a $55 billion deal to go private as it confidently described its merger and acquisition “pipeline” of pending and future deals. Other banks also touted strong demand for financial advisory service. But they expressed concern about weakening US job data.”While there have been some signs of a softening, particularly in job growth, the US economy generally remained resilient,” said JPMorgan chief executive Jamie Dimon.”However, there continues to be a heightened degree of uncertainty,” said Dimon, pointing to tariffs, the risk of “sticky” inflation and other factors.Executives also acknowledged concerns that sky-high equity valuations for artificial intelligence companies may be out of hand.Citigroup Chief Financial Officer Mark Mason said the stream of stock market records suggests “some frothiness in different sectors,” adding, “we’ll have to see how that ultimately evolves.”- Problem loans limited so far -Heading into the results, one overhang facing the sector was the question of exposure to a pair of recent high-profile bankruptcies.Accounts of the collapse of Texas-based Tricolor have pointed to “apparent or alleged fraud,” JPMorgan Chief Financial Officer Jeremy Barnum said on a conference call with reporters. Barnum said it can be difficult to avert all cases where a “motivated party” is committed to deception, but that the firm was looking at fortifying its controls.”This is not our finest moment,” added Dimon, who said colleagues would “scour every issue” in light of the revelations on the case.Citigroup also disclosed what it called “idiosyncratic downgrades” that more than doubled its corporate non-accrual loans compared with last year.Mason said Citi had not experienced broad problems within its portfolio, noting the bank was not exposed to Tricolor or to First Brands, a US auto supply firm whose bankruptcy has hit some other lenders, including UBS and Jefferies.”There’s no particular concentration of exposure that I’m worried about,” he said.While the damage from such examples has been limited so far, more cases of problem corporate lending could surface. Whalen said the financial system is still flush from a period of great liquidity due to central bank actions.”There’s been so much credit available,” he said. “It’s just that they haven’t gotten to the point where they’re cleaning house.”

US authorities on Tuesday unsealed an indictment against Chen Zhi, a UK-Cambodian businessman accused of running forced labor camps in Cambodia where trafficked workers carried out cryptocurrency fraud schemes that netted billions of dollars.The 37-year-old, known as Vincent, founded Prince Holding Group, a multinational conglomerate that authorities say served as a front for “one of Asia’s largest transnational criminal organizations,” according to the US Department of Justice.The Justice Department also filed the largest forfeiture action in its history, seizing approximately 127,271 Bitcoin worth around $15 billion at current prices.”Today’s action represents one of the most significant strikes ever against the global scourge of human trafficking and cyber-enabled financial fraud,” said Attorney General Pam Bondi.Chen allegedly directed operations of forced labor compounds across Cambodia where hundreds of trafficked workers were held in prison-like facilities surrounded by high walls and barbed wire.Under threat of violence, they were forced to execute so-called “pig butchering” scams — cryptocurrency investment schemes that build trust with victims over time before stealing their funds.The schemes targeted victims worldwide, causing billions in losses.Scam centers across Cambodia, Myanmar and the region use fake job ads to attract foreign nationals — many of them Chinese — to purpose-built compounds, where they are forced to carry out online fraud under threat of torture.Since around 2015, Prince Group has operated across more than 30 countries under the guise of legitimate real estate, financial services and consumer businesses, prosecutors said.Chen and top executives allegedly used political influence and bribed officials in multiple countries to protect the operation. Proceeds were laundered in part through the Prince Group’s own gambling and cryptocurrency mining operations.The stolen funds financed luxury purchases including watches, yachts, private jets, vacation homes and a Picasso painting bought at a New York auction house, authorities said.Chen faces up to 40 years in prison if convicted on wire fraud and money laundering conspiracy charges.In coordinated action, British authorities on Tuesday froze 19 London properties worth over £100 million linked to Chen’s network, including a £12 million mansion in North London.The sanctions also target Chen’s associate Qiu Wei Ren, a Chinese national with Cambodian, Cypriot and Hong Kong citizenship.An AFP investigation on Tuesday found that scam centers in neighboring Myanmar were expanding rapidly just months after a crackdown there. China, Thailand and Myanmar forced pro-junta Myanmar militias who protect the centers to promise to shutter the compounds in February, freeing around 7,000 people — most of them Chinese citizens.But the brutal call center-style system is flourishing again in Myanmar, now using Elon Musk’s Starlink satellite system for internet access.

China, the European Union and several other members of the International Maritime Organization reaffirmed their support on Tuesday for ambitious plans to cut shipping emissions, despite US threats.Initially approved in April, the London-based IMO are set to vote on Friday on formally adopting the Net Zero Framework (NZF), the first global carbon-pricing system.However, Washington’s threat to impose sanctions on those supporting it had cast doubt on the future of the framework, just as the summit where it is due to be adopted got under way.The summit’s first day on Tuesday was marked by friction between members supporting the NZF and those opposing it.The framework would require ships to progressively reduce carbon emissions from 2028, or face financial penalties.Last week, the United States threatened countries who vote in favour of the framework with sanctions, visa restrictions and port levies, calling the proposal a “global carbon tax on the world”.But several countries, including Britain, Brazil, China and the European Union, reaffirmed their commitment during Tuesday’s meeting of the 176-nation IMO.”We believe that reaching a consensus on global implementation (of the framework) is essential,” a representative from China told members.- Oil producers’ opposition -To be adopted, the framework needs the backing of two-thirds of the present and voting IMO members that are parties to the so-called MARPOL anti-pollution convention.The convention has 108 members.A majority of members — 63 states — that voted in favour of the NZF in April are expected to maintain their support on Friday.The plan would charge ships for emissions exceeding a certain threshold, with proceeds used to reward low-emission vessels and support countries vulnerable to climate change.Several major oil producers — Saudi Arabia, Russia and the United Arab Emirates — voted against the measure, and are expected to do so again this week, arguing it would harm the economy and food security.Pacific Island states, which abstained in the initial vote over concerns the proposal was not ambitious enough, are now expected to support it.The United States withdrew from IMO negotiations in April and did not comment on the proposal until last week.US threats could affect “countries more sensitive to US influence and vulnerable to these retaliations”, a European source told AFP.”We remain optimistic about the outcome, but it will probably be tighter than before, with a higher risk of abstention,” the source added.Countries highly dependent on the maritime industry, such as the Philippines and Caribbean islands, would be particularly impacted by US visa restrictions and sanctions.Contacted by AFP, IMO Secretary-General Arsenio Dominguez declined to respond directly to the US statement, maintaining he was “very confident” about the NZF vote.If the global emissions pricing system was adopted, it would become difficult to evade, even for the United States.IMO conventions allow signatories to inspect foreign ships during stopovers and even detain non-compliant vessels.Since returning to power in January, US President Donald Trump has reversed Washington’s course on climate change, denouncing it as a “scam” and encouraging fossil fuel use by deregulation.

US Treasury Secretary Scott Bessent slammed Beijing in an interview this week, accusing it of seeking to harm the global economy after China slapped sweeping new export controls in the strategic field of rare earths.”This is a sign of how weak their economy is, and they want to pull everybody else down with them,” Bessent told the Financial Times in an interview on Monday.His comments came days after Beijing imposed fresh controls on the export of rare earth technologies and items. China is the world’s leading producer of the minerals used to make magnets crucial to the auto, electronic and defense industries.Trade tensions between Washington and Beijing have reignited in US President Donald Trump’s second presidency, with tit-for-tat duties reaching triple-digit levels at one point.For now, both countries have de-escalated tensions but the truce remains shaky.The US Treasury chief claimed China’s new controls signaled problems in its own economy: “They are in the middle of a recession/depression, and they are trying to export their way out of it.”China has in recent years battled slowing economic growth and high youth unemployment, with growth hitting 5.2 percent in the second quarter.Beijing’s new measures sparked a fiery response from Trump, who on Friday said he would roll out an additional 100-percent tariff on the country’s goods from November 1.On Tuesday, US Trade Representative Jamieson Greer told CNBC that timeline could be accelerated.”A lot depends on what the Chinese do,” Greer said in the interview, adding that Beijing had “chosen to make this major escalation.”Last week, Trump also threatened to scrap a planned meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) summit starting later this month.China over the weekend accused the United States of “double standards” after Trump’s threat of further tariffs. The US leader later insisted that he wanted to “help China, not hurt it.”On Tuesday, China said it was ready to “fight to the end” in a trade war with the United States, shortly before a new wave of US tariffs on wood products took effect.A senior US official told the FT that China International Trade Representative Li Chenggang had previewed many of China’s current lines of attack that recently played out.The official said Li was aggressive in stating that the United States would face “hellfire” if things did not go his way.

Chipmaker Nexperia said Tuesday the Chinese government had banned it from exporting goods from China, after Dutch authorities seized control of the Netherlands-based firm citing management concerns.Nexperia has found itself at the centre of a tug-of-war between China and the Netherlands over semiconductors, an increasing source of global geopolitical tension.In its first statement since the Dutch move took effect on September 30, Nexperia said it was “actively engaging” with authorities in Beijing to gain an exemption from China’s counter-measures.Late Sunday, the Dutch government said it had invoked a Cold War-era law to effectively take control of the company, citing concerns about mismanagement.Under the 1952 Goods Availability Law, the Dutch government can block key decisions about hiring staff or relocating company parts for one year.The Dutch government said its use was “highly exceptional” and was invoked to ensure Nexperia’s chips that are used in a wide variety of electronic equipment would remain available in an emergency.The firm said that China’s response came on October 4.”The Chinese Ministry of Commerce issued an export control notice prohibiting Nexperia China and its subcontractors from exporting specific finished components and sub-assemblies manufactured in China,” the firm said.Nexperia said the Companies Chamber of the Amsterdam Court of Appeal had ordered the suspension of Chief Executive Zhang Xuezheng after concluding there were “valid reasons to doubt sound management.”- ‘Recklessness’ -The court published its judgement later Tuesday, which detailed a series of alleged impropriety by an executive not named in the statement, but identified as the CEO.The chamber found this executive guilty of a conflict of interest via his controlling stake in a Shanghai-based firm WSS, which manufactures wafers, the key components in semiconductors.According to the court, the CEO forced Nexperia to order as much as $200 million of wafers from WSS in 2025, when it only needed around $70-80 million.”This would mean that the wafers to be supplied by WSS would not be processed but be held in stock until obsolete… so that Nexperia was effectively ordering scrap,” the court said.In addition, the CEO cut off key finance officials from banking authorisation, granting power of attorney to individuals with no financial experience.”For a company the size of Nexperia, such conduct borders on recklessness,” said the court.The CEO fired executives who protested against this move, while the Global Head of Finance resigned after 39 years at the firm or its predecessors.Finally, the court said the CEO refused to implement key management changes agreed with Dutch authorities to ease concerns about Nexperia’s Chinese links.The chamber therefore decided to suspend the CEO and transfer all shares, except one, to an independent court-appointed administrator.Also revealed in the court document was an ultimatum from the US administration that was drawing up its “entity list” of firms viewed as acting contrary to Washington’s national security.The court cited minutes of meetings between Dutch officials and the US Bureau of International Security and Nonproliferation.The key point that was “problematic” for the American officials was “the fact that the company’s CEO is still the same Chinese owner.””It is almost certain that the CEO will have to be replaced to qualify for an exemption from the entity list,” the court cited the minutes as saying.Based in the Dutch city of Nijmegen, Nexperia says its chips power “virtually every electronic design worldwide.”Once part of Dutch electronics giant Philips, it was acquired in 2018 by Wingtech.

The International Monetary Fund on Tuesday lifted its outlook for global growth this year, flagging a milder-than-expected economic hit from President Donald Trump’s tariff policies while warning of risks ahead. In its flagship World Economic Outlook (WEO) report — compiled before the most recent US-China tariff spat — the IMF hiked its 2025 global growth forecast to 3.2 percent, up from 3.0 in July, while leaving its prediction for 2026 unchanged at 3.1 percent. The global inflation rate is expected to remain elevated at 4.2 percent this year, and 3.7 percent in 2026, underpinned by elevated inflation in several countries including the United States. “The tariff shock itself is smaller than initially feared,” IMF chief economist Pierre-Olivier Gourinchas told reporters in Washington on Tuesday, adding that the private sector had also supported growth by responding to Trump’s tariffs in an agile way.Other factors, including the AI boom and fiscal policies in Europe and China had also helped to prop up the global economy, he said.But, he warned, “the tariff shock is here, and it is further dimming already weak growth prospects.”Since returning to office, Trump has imposed sweeping tariffs on top trading partners including China and the European Union in a bid to reshape US trading relationships and boost domestic manufacturing. Over the weekend, the US president threatened fresh tariffs of 100 percent on China, on top of current steep levies, criticizing Beijing’s recent decision to tighten export controls on the rare earth minerals crucial to the defense and high-tech sectors. “Everything is very fluid,” Gourinchas told AFP in an interview. “But I think it’s a very useful reminder that we live in a world in which this kind of increase in trade tensions, increase in policy uncertainty, can flare up at any time.”- US upgraded, China unchanged -The IMF raised its prospects for economic growth for the United States, the world’s largest economy, by 0.1 percent this year and next, to 2.0 percent in 2025, and to 2.1 percent in 2026. However, this still represents a marked slowdown from 2024, when US growth hit 2.8 percent.Despite the trade tensions between the world’s two biggest economies, the Fund still expects China’s economy to slow to 4.8 percent this year from 5.0 percent in 2024, before cooling sharply to just 4.2 percent in 2026, in line with previous estimates. China’s slowdown has been driven by a reduction in net exports, which have been at least partly offset by growing domestic demand fueled by policy stimulus, the Fund said. Elsewhere in Asia, the IMF raised India’s 2025 growth forecast to 6.6 percent from 6.4 percent in the last outlook update in July, and hiked its prediction for growth in Japan to 1.1 percent — up 0.4 percentage points.  – Europe’s growth troubles continue -The outlook for Europe has improved slightly from July, with the Eurozone now expected to grow by 1.2 percent this year and by 1.1 percent in 2026. But despite the upgrade, Europe’s growth trajectory still significantly lags the United States.Germany’s economy is expected to bounce back from recession to register growth of 0.2 percent this year, up 0.1 percentage point, before picking up to 0.9 percent next year. And France, which is in the midst of a prolonged political crisis, is expected to see growth cool to 0.7 percent this year, before rising slightly to 0.9 percent in 2026.The one market exception in the Eurozone is Spain, which saw an upgrade and is now expected to see growth remain resilient at 2.9 percent this year and 2.0 percent in 2026.Growth in the United Kingdom is now expected to hit 1.3 percent this year and next. As the war in Ukraine continues, the Russian economy is likely to see a marked slowdown in growth this year to just 0.6 percent this year from 4.3 percent in 2024, the IMF said, cutting its outlook by 0.4 percentage points.