Weekly Global Outlook
Week of July 27–31
The Fed kept interest rates unchanged, earnings season remains strong, and major economies continue to deliver mixed economic signals.
Markets continue to balance a resilient economy with inflation that remains above target, limiting the pace of future rate cuts. Meanwhile, corporate earnings continue to outperform expectations, while several major economies posted stronger-than-expected growth.
United States
- The Federal Reserve left interest rates unchanged. While economic activity remains resilient, inflation continues to run above target, making near-term rate cuts less likely.
Europe
- The Eurozone and Germany posted stronger-than-expected economic growth, supported by technology and exports. However, higher energy prices continue to keep inflation under pressure.
Japan
- The Bank of Japan maintained its monetary policy stance while slightly improving its growth outlook. Meanwhile, the labor market continues to show remarkable resilience.
China
- Manufacturing activity contracted again, reflecting weaker domestic and external demand and reinforcing signs that the country’s economic recovery continues to lose momentum.
Argentina
- The IMF acknowledged improving confidence in Argentina’s macroeconomic outlook while maintaining caution regarding fiscal challenges and political uncertainty ahead of the 2027 elections.
Brazil
- Inflation continued to moderate, supported by lower food prices, providing additional room for monetary policy in the coming months.
Mexico
- Mexico’s economy exceeded expectations, driven by strong export growth that offset weak domestic demand and supported second-quarter economic activity.
“Never invest in a company without understanding its finances.”
— Peter Lynch
Upcoming Events
- U.S. ISM Manufacturing PMI — August 3
- U.S. Nonfarm Payrolls — August 7
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