Westpac – Market Outlook, Feb 2025

The report by Westpac "Market Outlook, Feb 2025" explores global economic trends, focusing on trade wars and monetary policies. This comprehensive market outlook analyzes the impact of renewed US-China tariff wars and the resulting volatility in global markets. It discusses the implications for economic growth and inflation across major economies, including the US, Europe, China, Australia, and New Zealand. The report highlights the sustained overvaluation of the US dollar and its effect on global FX markets. Additionally, it examines commodity market trends in 2024 and the potential for further disruption in 2025 due to geopolitical uncertainties and the transition to a low-carbon economy. Westpac forecasts monetary policy shifts, including rate cuts in Australia and potential changes in Japan, as central banks adjust to diverging economic conditions.