Germany’s wholesale prices rose 1.1% year-on-year in October 2025, after a 1.0% growth in the previous month, marking the 11th straight month of gain. Food, beverages, and tobacco costs increased 3.5%, driven by sharp rises in coffee, tea, cocoa, and spices (20.8%), sugar and bakery products (13.0%), and meat (9.4%). Prices for non-ferrous ores and metals also surged 26.3%. Meanwhile, declines were seen in waste materials (-8.6%), grains and animal feed (-7.3%), machinery (-4.0%), and petroleum products (-2.1%). On a monthly basis, prices rose 0.3%, exceeding forecasts of 0.1% and marking the strongest increase since February.

Germany’s consumer price inflation eased to 2.3% in October 2025, matching preliminary estimates and down from 2.4% in September. Inflation for goods slowed slightly (1.2% vs 1.4% in September) as food prices moderated (1.3% vs 2.1%), despite notable increases in fruit (3.1%), sugar and confectionery (8.2%), and meat and meat products (4.3%). Energy prices continued to decline at a steeper rate (-0.9% vs -0.7%), led by lower prices for heating oil (-6.0%) and electricity (-1.4%). Meanwhile, services inflation rose to 3.5% from 3.4%, driven by sharp increases in passenger transport (11.4%) and social services (8.0%). Core inflation, which excludes food and energy, remained steady at 2.8%. On a monthly basis, consumer prices increased 0.3%, following a 0.2% rise in September. The EU-harmonised inflation rate also eased to 2.3% year-on-year (down from 2.4%) and rose 0.3% month-on-month (vs 0.2% in September).

The dollar index hovered around 99.5 on Wednesday, holding losses from the previous session as signs of labor market weakness bolstered expectations for a near-term Federal Reserve rate cut. ADP’s high-frequency data showed private employers cutting roughly 11,250 jobs per week in the four weeks to October 25, raising concerns about the labor market at a time the government shutdown delayed the official monthly jobs report. Markets now price in about a 68% chance of a 25 bps rate cut in December, up from roughly 62% a day earlier. Meanwhile, optimism grew that the record-long shutdown could end soon, with the Republican-controlled House of Representatives poised to approve a bill restoring funding to key departments and agencies. So far this week, the dollar has slipped against the euro, aussie, and kiwi, but gained against the sterling and yen.

Brent crude oil futures dipped toward $65 per barrel on Wednesday, pausing a three-day gain as investors turned to reports for insights into the global crude outlook. OPEC is set to release its monthly market report later today, followed by the International Energy Agency’s annual energy assessment, both expected to shed light on projections through 2026 amid ongoing oversupply concerns. Limiting further losses, oil found support as fresh US sanctions on Russia began to disrupt crude and fuel markets. Lukoil declared force majeure at an Iraqi field, marking the most significant fallout so far from last month’s sanctions. Saudi Arabia, Iraq, and Kuwait also plan to boost December shipments to India as refiners seek alternatives to Russian supply. Adding to bullish sentiment, optimism grew that the US government shutdown will soon end, lifting demand expectations.

The value of new owner-occupier loan commitments for dwellings in Australia rose 4.7% quarter-on-quarter to a 3-1/2-year high of AUD 58.2 billion in Q3 2025, accelerating from a downwardly revised 2.2% gain in the previous quarter. Growth was driven by stronger demand among non–first-home buyers (6.2% vs 4.7% in Q2), while lending to first-home buyers slowed sharply (up 1.1% vs 5.5%). On an annual basis, owner-occupier lending jumped 9.8%. Meanwhile, investment lending for housing soared 17.6% to AUD 39.8 billion in Q3, sharply picking up from an upwardly revised 2.6% increase in the prior period. Year-on-year, investment loan values surged 18.7%.

The Reuters Tankan index for Japanese manufacturers rose to +17 in November 2025 from +8 in October, marking its strongest level since January 2022 as a weaker yen boosted global demand for cars and electronics. The electronics sub-index led the gains, surging from +5 to +25 on stronger chip-related orders and improved export competitiveness. The auto and transport machinery sector also rebounded sharply, climbing to +27 from +9 amid stable orders and currency tailwinds. Still, some firms cautioned that supply constraints and soft sales could limit momentum in the months ahead. The overall manufacturing index is projected to ease to +15 by February, with firms pointing to reduced output at major automakers such as Honda and Nissan, both recently lowering production targets. Business leaders also voiced concern that US tariffs and escalating trade frictions with China could weigh on exports.