Market Sentiment Tracker: Can Central Banks Stay the Course Amid Rising Risks?

The global economy is at an interesting juncture. While inflation seems to be moderating in some regions, persistent concerns around consumer sentiment, industrial momentum, and fiscal imbalances continue to shape the economic landscape. In the United States, an improving mortgage market contrasts with a record budget deficit and declining consumer confidence. In China, retail sales and industrial output signal resilience, but weak credit growth and a prolonged property slump raise structural concerns. Meanwhile, the Eurozone’s industrial sector is showing signs of stabilization, but inflation in key economies remains a challenge. The big question is whether central banks will feel comfortable staying on their current paths, or if policy adjustments will be needed to mitigate risks on the horizon.