The U.S. dollar weakened sharply on Thursday, with the Dollar Index (DXY) falling below 98.5—a level not seen since early 2022—amid escalating trade tensions and mounting expectations of a Federal Reserve rate cut.

Asian equity markets retreated sharply on Thursday following renewed tariff threats from former U.S.

The Australian benchmark S&P/ASX 200 index rose 0.4% to close at 8,620 on Wednesday.

Australia’s consumer confidence posted a marginal gain in June 2025, signaling a sharp slowdown in momentum amid global trade uncertainty and residual household financial strain.

Australia’s benchmark 10-year government bond yield hovered near 4.31% on Tuesday, maintaining its recent range as investors digested the latest monetary policy minutes from the Reserve Bank of Australia (RBA).

May 2025, the United Kingdom’s Office for National Statistics (ONS) publicly admitted that it had overstated the official consumer price index (CPI) inflation rate for April. The discrepancy—just 0.1 percentage point, pushing the figure from an actual 3.4% to a reported 3.5%—was caused by incorrect vehicle excise duty (VED) data provided by the Department for Transport.

The Eurozone’s inflation rate fell below the European Central Bank’s target for the first time in eight months, bolstering expectations of a monetary policy rate cut later this week. According to a flash estimate by Eurostat, consumer price inflation in the euro area slowed to 1.9% year-on-year in May 2025, down from 2.2% in April and below consensus forecasts of 2.0%.

Crude oil prices climbed for a second consecutive session on Tuesday, with WTI futures rising to $63.10 per barrel, as a confluence of geopolitical disruptions and persistent supply-side constraints reignited concerns over a tightening global energy market.

The U.S. manufacturing sector continued to shrink for a third consecutive month in May 2025, according to the latest data released by the Institute for Supply Management (ISM). The Manufacturing Purchasing Managers’ Index (PMI) fell to 48.5, down from 48.7 in April and falling short of economists’ expectations of 49.5.

The global economy is entering a slower growth phase, with the Organisation for Economic Co-operation and Development (OECD) forecasting a full-year expansion of just 2.9% in both 2025 and 2026, down from 3.3% in 2024.

The United States Dollar Index (DXY) rose to approximately 99.7 as of Wednesday, driven by a convergence of political easing and improving macroeconomic sentiment.

The economic mood in the Euro Area revealed a fragmented outlook in May 2025, as services sector sentiment fell to its lowest level in over four years while industrial confidence and consumer sentiment showed modest but notable gains.

Tokyo, May 28, 2025 — Japan’s 10-year government bond yield rose 5 basis points to 1.52% on Wednesday, breaking a three-day losing streak as policymakers signaled growing concern over volatility in the nation’s bond markets.

Australia stands at a critical economic juncture. While inflation is under relative control, underlying dynamics remain complex. Construction activity is regionally fragmented, and policy trade-offs are increasingly acute. The RBA’s cautious easing reflects both progress in taming inflation and anxiety over economic softness.

Markets were rattled this week as former U.S. President Donald Trump announced a sweeping proposal to impose new tariffs, including a 50% levy on European Union imports and a 25% tariff on Apple products manufactured outside the U.S.

In May 2025, a data error in the UK’s inflation release offered a rare case to study how markets respond to incorrect economic news and its later correction. On 21 May 2025, the ONS announced that consumer price index (CPI) inflation had jumped to 3.5% in April, up sharply from 2.6% in March. This headline figure overshot market expectations (consensus ~3.3%) and even the Bank of England’s forecast (~3.4%), signaling a surprise uptick in price pressures.

The United Kingdom’s official statistical system was shaken by revelations that critical economic data had been calculated using incorrect inputs, leading to inaccuracies in key indicators. The Office for National Statistics (ONS) – the UK’s national statistical agency – uncovered a methodological error in the price data used for GDP calculations, raising concerns that GDP growth figures for recent years were off-target.

Global trade liberalization has been a driving force in shaping economic outcomes over the past decade. Between 2017 and 2025, countries experienced significant changes in trade policy –making this period ideal for studying the impact of liberalization. In this analysis, we construct a comprehensive country-level panel dataset to examine how reducing trade barriers affects trade flows, GDP growth, and employment.

This framework outlines a comprehensive approach to analyzing global trade liberalization from 2017 to the present. It covers the key datasets needed (with sources), suitable econometric models, data preparation steps, and solutions for missing data and comparability issues.

The period from 2017 to 2024 has been tumultuous for global trade. After decades of steady liberalization, a wave of protectionism and trade tensions emerged, epitomized by tariff wars and rising barriers. At the same time, many countries pushed forward with new trade agreements and reforms to keep markets open.