Global Markets Jitter as China’s GDP Beats, US Dollar Slides, Trade Talks Heat Up

Markets are on edge this Wednesday as a flurry of major economic and corporate developments shape the global business landscape.

 

China’s Q1 GDP Surprises, But Storm Clouds Gather

China’s economy grew 5.4% year-on-year in Q1 2025, beating expectations and matching last quarter’s pace. Industrial output surged 7.7% in March, and retail sales jumped 5.9%, reflecting strong domestic demand and a rush to export before new US tariffs hit. However, with President Trump’s tariffs now at 145% and retaliation from Beijing, analysts warn of a sharp slowdown ahead. Major banks have already slashed China’s 2025 growth forecasts, citing export risks and a fragile property sector. Policymakers are expected to roll out fresh stimulus to cushion the blow.

 

US Dollar’s Unexpected Slide

The US dollar index has plunged to a three-year low, defying its traditional “safe haven” status. Trump’s sweeping tariffs have rattled investor confidence, prompting a shift to the euro and other currencies. The euro has surged past $1.14, while US equities remain volatile. Analysts attribute the dollar’s weakness to concerns over US asset appeal and the scale of the tariff shock.

 

India-US Trade Talks Accelerate

India and the US are set to wrap up key aspects of their trade negotiations within six weeks, aiming for a bilateral deal by fall. Despite reciprocal tariffs, both sides are optimistic, with in-person talks scheduled for next month. The goal: double bilateral trade to $500 billion by 2030..

 

Source: Reuters, Times of India, CNBC-TV18, Economic Times