International News 03 December 2025
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Global Manufacturing Slows as Weak Demand and Tariff Uncertainty Weigh on Industry
Manufacturing activity weakened across Europe and several major Asian economies in November, dragged down by soft domestic demand and persistent uncertainty over U.S. trade tariffs. The eurozone, China, and Japan all posted contractionary PMI readings, with Germany seeing the sharpest drop in new orders in 10 months and the region cutting jobs at the fastest pace in seven months. Analysts cite ongoing tariff pressures, rising competition from China, and broad economic uncertainty as key headwinds. Meanwhile, China’s private-sector PMI again showed mild contraction amid high inventories and weak container volumes, while Japan recorded its 30th straight month of falling new orders. Not all major economies slowed. The U.K. returned to manufacturing expansion for the first time since September 2024, supported by stronger domestic demand, while Italy also swung back to growth. In contrast, France saw deeper contraction as production and orders continued to fall. Across Asia, the impact of U.S. tariffs under President Donald Trump continues to pressure exporters, though trade agreements with Japan and South Korea and easing tensions with China have offered modest relief. South Korea remained in contraction despite strong chip and auto exports, Taiwan reported another month of declining factory activity, and Southeast Asia stood out as a bright spot with Indonesia, Vietnam, and Malaysia reporting solid or improving manufacturing growth.
Gold Steadies Near Six-Week High as Rate-Cut Bets Strengthen and Silver Hits Record
Gold prices held steady on Monday after reaching a six-week peak, supported by risk-off sentiment and growing expectations of a U.S. rate cut later this month. Spot gold edged up 0.1% to US$4,235.59 per ounce after touching its highest level since October 21, while U.S. gold futures rose 0.3% to US$4,269.40. A weaker U.S. dollar—its lowest in two weeks—made bullion more attractive to global buyers. Analysts noted that declines in S&P futures and a broad sell-off in major cryptocurrencies, including sharp drops in Bitcoin and Ether, boosted demand for gold as a safe-haven asset. Expectations for Fed easing strengthened after dovish remarks from Fed officials Christopher Waller and John Williams, combined with weaker U.S. data. Speculation grew further as White House economic adviser Kevin Hassett, seen as the frontrunner to replace Jerome Powell, signaled support for lower interest rates. Investors now look ahead to Friday’s core PCE data for clearer guidance on the Fed’s December policy decision.
Standard Chartered Lifts China’s 2026 Growth Forecast on Strong Exports and Productivity Gains
Standard Chartered has raised its 2026 GDP growth forecast for China to 4.6% from the previous 4.3%, citing resilient export performance and sustained improvements in productivity. In a research note released Monday (Dec 1), the bank highlighted that China’s export sector is likely to remain competitive, supported by easing trade tensions with the United States following a bilateral truce. The firm also expects China’s continued productivity enhancements to reinforce economic momentum through 2026. Based on these factors, Standard Chartered projects that Beijing will set an official growth target in the 4.5%–5% range for next year, reflecting policymakers’ confidence in stable external demand and structural efficiency gains.