Growth warning from France, critical messages from the central banks of Japan and Canada: What is happening in global markets?

Trade tensions in global markets and central banks' policy moves are at the forefront of current events. The Bank of France has revised its growth forecasts downward, while the central banks of Japan and Canada have issued significant messages regarding their monetary policies. As risks from the trade war between the U.S. and China increase market volatility, selling pressure is observed in European and U.S. stock markets.

The Bank of France has downgraded its growth expectations, stating that trade tensions negatively affect demand for French exports. The bank forecasts a growth of 0.7% for France's economy this year and 0.9% in 2025, down from a 1.1% growth recorded in 2023. Similarly, Japan is grappling with deflation risks, while Canada's central bank has lowered interest rates to counteract trade-related uncertainties.