Key Takeaways
- S&P Global Ratings upgraded India's sovereign credit rating to 'BBB' from 'BBB-', citing robust economic resilience and sustained fiscal consolidation, with a stable outlook.
- The Eurozone's economic growth slowed in the second quarter of 2025, with GDP holding at a modest 0.1% quarter-on-quarter and industrial production contracting by 1.3% month-on-month in June, missing expectations.
- CK Hutchison Holdings (CKHUY) reported a significant decline in its first-half 2025 profit, plummeting to HK$852 million from HK$10.2 billion year-on-year.
- Federal Reserve's Mary Daly indicated that a 50 basis point rate cut in September does not seem warranted, while Norges Bank's Governor Bache stated no decision has been made on a September rate cut.
- The UK's economy grew by a stronger-than-expected 0.3% in Q2 2025, though output per hour declined, while Italy's general government debt continued to rise, reaching EUR 3.07 trillion in June.
Global financial markets are navigating a landscape of mixed economic data and cautious central bank commentary, with a notable upgrade for India contrasting with signs of slowing growth in the Eurozone and significant corporate earnings declines.
India's Sovereign Rating Boosted by S&P
In a significant development for emerging markets, S&P Global Ratings has upgraded India's sovereign credit rating to 'BBB' from 'BBB-', maintaining a stable outlook. This upgrade reflects the agency's confidence in India's economic resilience and ongoing fiscal consolidation efforts. The move could potentially lower India's borrowing costs and attract further foreign investment, signaling a positive outlook for the nation's financial stability.
Eurozone Faces Economic Headwinds
The Eurozone's economic performance in the second quarter of 2025 revealed a slowdown. Preliminary data showed that Gross Domestic Product (GDP) grew by a mere 0.1% quarter-on-quarter, matching expectations but indicating a substantial deceleration from the first quarter's growth. On a year-on-year basis, GDP growth stood at 1.4%.
Further dampening the regional outlook, Eurozone industrial production for June contracted by 1.3% month-on-month, falling short of the estimated -1.0% and reversing May's 1.7% gain. Year-on-year, industrial production saw only a 0.2% increase, significantly below the 1.5% estimate. Meanwhile, Eurozone employment growth also decelerated, with a preliminary Q2 increase of 0.1% quarter-on-quarter, down from 0.2% previously, though the year-on-year growth remained at 0.7%.
Central Banks Maintain Cautious Stance
Central bankers offered insights into their monetary policy considerations. Federal Reserve's Mary Daly stated that a 50 basis point (bps) rate cut next month would send an "unwarranted urgency signal" regarding the strength of the labor market, suggesting a more measured approach to potential rate adjustments.
In Norway, Norges Bank Governor Ida Wolden Bache clarified that the central bank has not yet made a decision on whether to cut rates in September, despite earlier hints. Bache also noted that this summer's new tariffs were higher than expected, and the Norges Bank anticipates the economy to expand moderately in the years ahead.
Corporate Earnings and Other Key Data
CK Hutchison Holdings Limited (CKHUY) reported a sharp drop in its first-half 2025 earnings, with reported profit plummeting to HK$852 million compared to HK$10.2 billion in the same period last year. This significant decline highlights challenges faced by the conglomerate.
Elsewhere, UK output per hour in Q2 declined by 0.8% year-on-year, worsening from the previous quarter's -0.2%. Despite this, the Pound continued its recent rise, buoyed by the UK's overall economic growth outperforming expectations in Q2. In Italy, the general government debt increased to EUR 3.07 trillion in June, up from EUR 3.053 trillion in the prior month. Finally, the Saudi Public Investment Fund reported an $8 billion loss, revealing difficulties in some of its major projects.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.