Weekly Macro & Markets View

What were the key global economic data releases, what is Zurich’s view and what does this mean for financial assets?

Weekly Macro and Markets View, Week 50

The latest ISM surveys show that US manufacturing remains under pressure while service activity is holding up
It is reassuring that services price pressure, while still elevated, seem to have softened.
Eurozone HICP inflation rose to 2.2% YoY in December, close to the ECB’s 2% target
Core inflation is still rising at 2.4% YoY, but forward-looking indicators imply further weakening in 2026.
The Reserve Bank of India (RBI) cuts the repo rate by 25bp to 5.25% and raises its growth forecast while lowering the inflation forecast
Low inflation and strong growth present a sweet spot for the economy, and further rate cuts appear unwarranted.