The annual inflation rate in the UK slowed to 2.6% in March 2025 from 2.8% in February and below market and the BoE's forecasts of 2.7%. The largest downward contributions came from recreation and culture (2.4% vs 3.4%), mainly games, toys and hobbies (-4.2%) and data processing equipment (-5.1%). Transport also contributed to the slowdown (1.2% vs 1.8%), largely due to a 5.3% fall in motor fuel prices. In addition, prices rose less for restaurants and hotels (3%, the lowest since July 2021 vs 3.4%), mostly accommodation services (-0.6%); housing and utilities (1.8% vs 1.9%); and food and non-alcoholic beverages (3% vs 3.3%). In contrast, the most significant upward contribution came from clothing and footwear (1.1% vs -0.6%), with prices usually rising in March as spring fashions continue to enter the shops. Compared to the previous month, the CPI edged up 0.3%, slightly below both the previous month’s increase and expectations of 0.4%. Annual core inflation slowed to 3.4% from 3.5%.

The current account surplus in the Euro Area narrowed to €33.1 billion in February 2025 from €33.8 billion a year earlier. The services surplus fell to €7.1 billion from €7.4 billion, and the primary income surplus went down to €2.1 billion from €4.4 billion. On the other hand, the goods surplus widened to €38.3 billion from €36.7 billion, and the secondary income shortfall narrowed to €14.3 billion from €14.8 billion. On a seasonally adjusted basis, the current account surplus fell to €34.3 billion in February from €40.3 billion in the previous month.

European stocks declined on Wednesday, with both the STOXX 50 and STOXX 600 falling 0.6%, as trade war tensions persisted and investors digested a fresh round of corporate earnings. Technology stocks were the hardest hit, led by a 6.5% drop in ASML shares after the company reported disappointing Q1 net bookings. Its CEO also warned that “uncertainty with some of our customers” could push full-year revenue toward the lower end of guidance. Adding further pressure to the tech and semiconductor sectors were announcements from Nvidia, revealing that the US government had blocked sales of certain AI chips to China without a license. The company also noted it expects to take a $5.5 billion revenue hit this quarter as a result. Basic resources and financial services also ranked among the worst-performing sectors.

China's industrial production rose by 7.7% yoy in March 2025, beating market expectations of a 5.6% increase and accelerating from the 5.9% growth recorded in the January–February period. It was the strongest expansion in industrial output since June 2021, ahead of looming hefty U.S. tariffs. All major sectors grew faster: manufacturing (7.9% vs 6.9% in January–February), electricity, heat, gas, and water production and supply (3.5% vs 1.1%), and mining (9.3% vs 4.3%). Within manufacturing, 39 out of 41 major sectors showed expansion, notably computer and communication (13.1%), heat production (3.3%), ferrous metal smelting and rolling processing (7.7%), non-ferrous metal smelting (6.5%), coal mining and washing (10.6%), cars (11.5%), textiles (5.7%), chemical products (8.8%), and oil and natural gas (6.8%). Monthly, industrial output rose by 0.44% in March. In Q1 of 2025, industrial production grew by 6.5%. Last year, industrial output expanded by 5.8%.

Gold climbed toward $3,290 per ounce on Wednesday, setting a new record, as ongoing uncertainty around US trade policy continued to support safe-haven demand, alongside a broadly weaker dollar. On Tuesday, President Trump called for an investigation into potential tariffs on all critical mineral imports—a move that signals a firmer stance on trade and could influence relations with key suppliers, including China. This development partially offsets the market relief from the recent exclusion of certain tech products from reciprocal tariffs and the indication of possible exemptions for auto parts. Adding to the bullish momentum, major banks remain positive on gold’s outlook, citing continued inflows into gold-backed ETFs and sustained central bank buying. Investors now look ahead to US retail sales data and a speech from Fed Chair Powell later today for further clues on the economic outlook and monetary policy trajectory.

Japan’s core machinery orders rebounded sharply in February 2025, rising 4.3% month-on-month to ¥894.7 billion, well above market expectations for a 0.8% increase. The figure marked the highest level in a year and a strong recovery from January’s 3.5% decline. Manufacturing orders rose 3% to ¥425.4 billion, while non-manufacturing orders jumped 11.4% to ¥487.3 billion. Notable gains came from sectors such as non-ferrous metals (+144.8%), transportation and postal services (+39.6%), chemicals (+39.6%), textiles (+37.9%), and finance and insurance (+33.8%). On a year-over-year basis, private-sector machinery orders grew 1.5%, easing from January’s 4.4% increase but outperforming forecasts for a 1.4% decline.