Trump’s Chaotic Return Sparks Market Volatility: 22 January 2025
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Market Mood
The U.S. economy ended last year outperforming other developed nations, with business activity accelerating at the fastest pace since April 2022, fueled by optimism over pro-growth policies and easing financial conditions. In contrast, weaker growth in the UK and eurozone may prompt central banks to consider measures to support their economies, as concerns over U.S. trade policies linger. While CPI data showed easing core inflation in the U.S. and UK, rising PMI selling price gauges suggest potential inflationary pressures ahead. Upcoming economic events, including UK labor market updates and the Bank of Japan’s anticipated interest rate decisions, are also under scrutiny.