Discuss the winds of change in the market, as the stock exchange reacts to the Trump administration's tariff threat against the European Union and Mexico. Skip to main content

Japan’s economy slows, missing growth forecasts

Japan's Economy Slows, Missing Growth Forecasts: A Deeper Dive into the Consequences Jean's economy has been dealt a significant blow as the latest data reveals a sluggish growth rate of 0.3 percent in the second quarter, falling short of initial forecasts. The underwhelming performance can be attributed to a decline in consumption and capital spending, posing significant concerns for the country's economic trajectory. As the world's third-largest economy, Japan's slowdown is likely to have far-reaching implications for the global market. Key Highlights: Sluggish GDP growth: Japan's GDP rose by a mere 0.3 percent in the second quarter, missing initial forecasts and sparking concerns about the country's economic momentum. Decline in consumption: Weakened consumer spending, which accounts for roughly 60 percent of Japan's economy, has been a major contributor to the slowdown. Capital spending sag: A decline in capital expenditure has also hin...

Discuss the winds of change in the market, as the stock exchange reacts to the Trump administration's tariff threat against the European Union and Mexico.


The major European indices suffered heavy losses on Monday as EU ministers met to discuss their reaction to Trump’s alliance to start levying a 30% tariff against the bloc’s goods from August 1.

Germany’s DAX was down almost 0.9 percent by 08:30 GMT, while the CAC 40, IBEX 35, and FTSE MIB were down from 0.7 to 0.8 percent.

The STOXX 600 index declined about 0.5 percent.

UK’s FTSE 100 would try to hold the rally, up by 0.2 percent.

Asia markets remained broadly tentative with Japan’s Nikkei 225 retreating by about 0.3 percent while the Hang Seng dipped by the same amount.

Off-hours US futures fell early Monday, with those for the S&P 500 and the Nasdaq Composite index plunging by over half a percent.

Markets are jittery with the August 1 deadline looming for US trade partners to strike trade deals with the other side.

No agreements have been announced by the Trump administration aside from the UK, China, and Vietnam, despite the long negotiations.

If Brussels and Washington cannot agree, EU officials threatened to impose retaliatory tariffs on US goods worth approximately 100 billion euros ($117bn).

In 2024, the EU was the largest trading partner of the US, with bilateral trade in goods and services amounting to 1.7 trillion euros ($2 trillion), according to the EU statistics agency Eurostat. 

On Sunday, European Commission President Ursula von der Leyen announced that the bloc would now push back the imposition of retaliatory tariffs on the US to August to give more time for officials to try and wrangle an agreement with the Trump administration.

"We've always stated clearly that we want to have a negotiated solution," said von der Leyen.


SOURCE : NEWS AGENCIES

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