The Pulse: Global Economic and Market Conditions for November 13, 2024

As of November 13, 2024, global financial markets and economies are experiencing significant movements influenced by recent political events and economic policies.‍

United States

• Stock Markets: Following the recent presidential election, the U.S. stock markets have reached record highs. The Dow Jones Industrial Average surged 1,508 points to 43,729.93, and the Nasdaq Composite increased 544 points to 18,983.47. Investing

• Federal Reserve: The Federal Reserve has implemented its second rate cut of the year, reducing the federal funds rate by 0.25 percentage points. This decision reflects the central bank's response to easing inflationary pressures and aims to support economic growth. Financial Times

Europe

• Stock Markets: European stocks and currencies tumbled on Tuesday due to investor concerns over the impact of a stricter approach toward China under President Trump's second term. The Stoxx Europe 600 index lost 2%, marking its worst daily performance since early August. The Australian

• Economic Outlook: European Central Bank (ECB) officials have cautioned that Europe must be prepared for a possible new trade war with the United States, as incoming U.S. President Donald Trump is set to implement a 10% universal tariff on imports and a 60% tariff on imports from China to reduce the U.S. trade deficit. Reuters

Asia

• Japan: Japan reported that its exports jumped nearly 10% in December compared to the previous year. However, Tokyo shares fell almost 1% after a recent strong rally as speculation revived about the Bank of Japan's shift away from longstanding lax monetary policy. International Monetary Fund

• South Korea: South Korea's Kospi added 0.3% to 2,601.66. The market showed resilience amid global uncertainties, with investors cautiously optimistic about the domestic economic outlook. The Conference Board

• China: China is considering a substantial fiscal stimulus plan, potentially involving over $1.4 trillion in additional debt issuance over the next few years, to stimulate its economy amid ongoing challenges in the property sector and local government debt. AP News

Global Economic Outlook

The global economy is projected to grow at a steady pace of 3% in 2025, supported by interest rate cuts from major central banks and robust U.S. economic performance. Yahoo Finance

Sources: "U.S. stock markets reach record highs" Investing.com, "Federal Reserve rate cut details" FT.com, "European stocks and currency concerns" The Australian, "ECB on U.S. trade policies" Reuters, "Japan's economic updates" IMF, "South Korea's Kospi index update" Conference Board, "China’s fiscal stimulus consideration" AP News, "Global economic growth projection" Yahoo Finance.

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