Global Weekly Outlook 

Week of August 3–7

Labor market softens while artificial intelligence continues to fuel corporate growth.

Markets navigated a week of mixed signals. While the U.S. labor market slowed more than expected, manufacturing activity and earnings season continued to benefit from investment in artificial intelligence. At the same time, Europe maintained moderate growth, Asia remained supported by trade, and Latin America continued to navigate a cautious monetary policy environment.

• United States

Employment came in weaker than expected, reinforcing expectations that the Fed will keep interest rates unchanged. Manufacturing activity and corporate earnings continue to show strength, driven by investment in artificial intelligence.

• Europe

Producer price inflation continued to moderate, although consumer demand remained weak. Manufacturing showed modest improvement, supported by stronger exports and easing input costs.

• Japan

Manufacturing recorded its seventh consecutive month of expansion, with the strongest production growth since 2014, fueled by robust AI-related demand.

• China

Exports remained strong, supported by technology and AI-related demand, while manufacturing activity moderated, pointing to more balanced economic growth.

• Argentina

The renewal of the currency swap agreement with China strengthens external liquidity and provides additional financial support for bilateral trade.

• Brazil

The central bank lowered its benchmark interest rate while maintaining a cautious stance on inflation. Industrial activity continues to show signs of slowing.

• Mexico

Banxico kept its benchmark interest rate unchanged. Public investment and remittances continue to support economic activity despite ongoing global uncertainty.

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Upcoming events

• In the United States, inflation data will be released 08/12
• In the United States, PPI data will be released on 08/13

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