Today, Beijing imposed sanctions on five subsidiaries of South Korean shipbuilder Hanwha Ocean — Hanwha Shipping LLC, Hanwha Philly Shipyard Inc., Hanwha Ocean USA International LLC, Hanwha Shipping Holdings LLC, and HS USA Holdings Corp. — for “supporting US investigations and measures against China’s maritime, logistics, and shipbuilding sectors.” Chinese organizations and individuals are now prohibited from cooperating with these firms, which experts say could strain negotiations and raise risks of a global economic slowdown.

The growing tension between the two nations appears to be a structural feature of new geopolitical realities. Philadelphia Fed President Anna Paulson recently stated that labor market risks support further rate cuts by the Federal Reserve. She added that if the economy performs as expected, current monetary adjustments should be sufficient to maintain near-full employment. However, she also warned that if inflation spikes again, the Fed may need to respond with renewed tightening.

Eurozone

The euro is falling against the yen and the US dollar but strengthening versus the pound.

Germany’s September inflation data showed monthly CPI rising from 0.1% to 0.2%, and annual inflation increasing from 2.2% to 2.4%. The harmonized index also rose to 2.4%. Despite this, most ECB officials view price growth as near the 2.0% target, making further policy adjustments unlikely before early next year. The ZEW Economic Sentiment Index for the eurozone dropped from 26.1 to 22.7 (below forecasts of 30.2), while Germany’s index rose from 37.3 to 39.3. Analysts note improving sentiment in metallurgy, pharmaceuticals, machinery, and electrical equipment — but automakers remain under pressure due to higher US tariffs and weaker foreign demand.

United Kingdom

The pound is weakening against major rivals — the euro, yen, and US dollar.

Traders are focusing on September labor market data: employment rose by 91,000 after a 232,000 increase in July, unemployment edged up to 4.8% from 4.7%, and wage growth (excluding bonuses) slowed slightly to 4.7%, while total pay accelerated to 5.0%. The cooling job market could justify another Bank of England rate cut soon. Meanwhile, BRC retail sales rose 2.0% in September after 2.9% in August, missing expectations of 2.5%. Experts cite higher energy prices and tax reform as key drags on consumer spending.

Japan

The yen is strengthening against the euro, pound, and US dollar.

Finance Minister Katsunobu Kato said Japan needs a new economic strategy reflecting current realities, where inflation — not deflation — is the main concern. He reiterated that the government will closely monitor market volatility and stressed the importance of exchange rates moving in line with fundamentals rather than speculative activity.

Australia

The Australian dollar is declining against all major counterparts — the euro, pound, yen, and US dollar. The focus remains on the Reserve Bank of Australia’s latest meeting minutes, which showed policymakers kept the cash rate at 3.60% after three 25-basis-point cuts this year. The RBA cited persistent risks and said future moves will depend on incoming data. Markets currently price a 50% chance of another cut at the next meeting and 70% by December.

Oil

Oil prices are falling amid worsening US-China tensions and a new IEA report. Analysts fear China’s sanctions on US-linked firms could trigger retaliation from Washington, raising global recession risks and reducing energy demand. The IEA also projected a global oil surplus of up to 4 million barrels per day next year, as OPEC+ and non-member producers continue ramping up output despite weak demand.