The global economy is showing signs of resilience and reduced uncertainty, with the international composite PMI reaching a 15-month high of 52.9 in August, and trade tensions easing temporarily.

European economic activity in Q3 is showing modest improvement, as the euro area's composite PMI rose to 51.0 in August, with manufacturing expanding for the first time since June 2022 and domestic demand remaining resilient despite slower growth in Germany and Italy.

In the US, labor market indicators suggest a slowdown, with job creation decreasing to an average of 51,000 new jobs per month in July and August, and the unemployment rate holding steady at 4%, sparking discussions about potential rate cuts.

Inflation trends diverge between the US and eurozone, with eurozone inflation at 2.1% in August, close to the ECB's target, while US inflation remains higher at 2.7% in July, with core inflation at 3.0%, though tariffs seem to have limited impact on consumer prices.

US GDP rebounded by 0.8% quarter-on-quarter in Q2, driven by a positive contribution from the foreign sector, despite declines in imports and exports, reversing earlier expectations.

Trade negotiations remain uncertain due to ongoing legal and political issues, including a US court ruling on tariffs and political tensions in France, which could impact overall economic stability.

The US and the EU agreed to a 15% tariff on certain exports like cars and pharmaceuticals, with the US extending tariffs to Japan and other countries, raising the effective US tariff to nearly 17%, the highest since 1934.