Resilient China, Mixed CPI: Navigating a Fragmented Global Macro Landscape

Amundi Investment Institute’s Weekly Market Directions (21 July 2025) offers a cross-asset perspective on diverging global growth paths, tariff developments, and inflation dynamics shaping investor positioning.

• China beats expectations: Q2 GDP growth reached 5.2% YoY, aided by export front-loading and trade diversification, though weaker domestic consumption could weigh on H2 performance.

• Tariffs and CPI in flux: US core inflation rose 2.9% YoY in June, with tariffs showing limited immediate impact—keeping the Fed on hold for now amid mixed signals.

• Sentiment rebounds in Europe: Improved ZEW readings and tariff de-escalation with Indonesia support a cautiously constructive outlook across EM and EU assets.

What does a multi-speed recovery mean for tactical and strategic allocation? The full report provides region-by-region breakdowns and cross-asset implications.