The world economy is expected to slow this year, with growth projected at 2.9% in both 2025 and 2026, down from 3.3% last year, according to the OECD. The group attributed the weaker outlook to rising global uncertainty, primarily driven by shifting US trade policies under President Trump. The report warns that more trade barriers could further damage growth, reduce incomes, and slow job creation. The US is forecast to grow just 1.6% this year, down from 3.3% in 2024, due to tariffs, reduced immigration, and government job cuts. Mexico and Canada are also expected to see slower growth due to their close trade ties with the US. Meanwhile, the OECD said that higher trade costs, especially in countries raising tariffs, will also push up inflation, although their impact will be offset partially by weaker commodity prices. While inflation is easing in many areas, service prices remain stubbornly high, and rising government spending, especially in defense, must be carefully managed.

European shares rebounded on Tuesday, with the Stoxx 50 and Stoxx 600 rising about 0.2%, supported by broader market gains. Investors remained focused on US trade policy developments, with some hope after the White House said Presidents Trump and Xi may speak this week, despite rising trade tensions. Caution persisted as Trump’s unpredictable tariff plans continued to unsettle markets. The US administration also asked an appeals court to pause a ruling that could block new tariffs and urged countries to submit trade proposals by Wednesday. In Europe, attention turned to upcoming euro zone inflation data and the European Central Bank’s interest rate decision later this week. Among stocks, UBS jumped 3.3% after Jefferies upgraded it to "buy," while Julius Baer dropped 1.9% after announcing new cost cuts worth 130 million Swiss francs by 2028.

The annual inflation rate in Turkey slowed to 35.41% in May 2025 from 37.86% in April and below market expectations of 36.1%. This marks a year-long easing in consumer inflation and the lowest level since November 2021, as price growth continued to slow across almost all sub-indexes. Notably, inflation moderated for food and non-alcoholic beverages (32.87% vs 36.09% in April) and housing and utilities (67.43% vs 74.07%). It also eased for furnishing, household equipment, and routine maintenance (29.69% vs 30.54%), clothing and footwear (14.12% vs 16.92%), and hotels, cafes, and restaurants (36.91% vs 41.87%). In contrast, transport inflation was the only category to rise, increasing to 24.59% from 22.76%. Meanwhile, core inflation dropped to 35.37%, the lowest since December 2021, from 37.12% in the previous month. On a monthly basis, the CPI rose 1.53%, the smallest increase in five months, following a 3% rise in April and coming in below forecasts of a 2% gain.

The number of people registering as jobless in Spain declined by 57,835, or 2.3%, over a month to 2.455 million in May 2025, falling below the 2.5 million mark for the first time since July 2008. Analysts had expected a reduction of 68,500 people. Unemployment fell across all sectors in May, with services seeing the largest decrease (-42,930; -2.4%), followed by construction (-5,562; -3%), industry (-4,574; -2.4%), and agriculture (-2,259; -2.8%). The number of previously unemployed also declined by 2,510 (-1.1%). Meanwhile, unemployment among young people under 25 fell by 6,426 people (-3.6%) in May compared to the previous month, bringing the total to 171,003, the lowest figure ever recorded for this group.

Consumer prices in Switzerland edged down 0.1% year-on-year in May 2025, after remaining flat in the previous month, matching market expectations. This marked the first instance of deflation since March 2021, mainly driven by sharper declines in transport prices (-3.7% vs -2.6% in April), continued falls in food and non-alcoholic beverages (-0.3% vs -0.8%), and healthcare (-0.2% vs -0.3%). Prices also declined for household goods and services (-2.6% vs -2.2%), clothing (-0.3% vs -0.2%), and recreation and culture (-0.1% vs -0.7%). Meanwhile, prices rose more moderately for housing and energy (1.1% vs 1.4%) and for restaurants and hotels (1.3% vs 1.6%), while inflation remained steady for communication (1.0%). Core inflation, which excludes volatile items such as unprocessed food and energy, eased to a 44-month low of 0.5% from 0.6% in April. On a monthly basis, the consumer price index inched up 0.1%, after remaining flat in the previous two months and in line with market forecasts.

Copper futures dropped more than 2% to around $4.70 per pound on Tuesday, reversing gains from the previous session, as weaker-than-expected economic data from China—the world’s largest consumer of the metal—dampened its demand outlooks. A private survey revealed that China’s manufacturing activity unexpectedly contracted in May, hitting its lowest level in over two years. The data highlighted growing pressure from US tariffs, with new export orders declining at a faster pace. The figures echoed Saturday’s official PMI release, which also showed factory activity shrinking for a second consecutive month. The pullback in copper prices comes after a sharp 5% surge on Monday, driven by fears that copper could be targeted next in escalating trade tensions. US President Donald Trump’s threat to double tariffs on steel and aluminum imports to 50%, along with an ongoing US investigation into copper imports, fueled market speculation.