China's GDP grew by 4.5% year-on-year in the third quarter, driven primarily by strong export demand, particularly in electronics and automotive sectors. However, domestic consumer spending remains weak, indicating a disparity between industrial output and household investment. Policymakers are optimistic about meeting the 2026 growth target without additional stimulus, despite ongoing structural challenges.
In France, violent protests have led to significant unrest, impacting financial markets. The yield on French government bonds has risen, reflecting investor concerns over political stability and fiscal issues. The protests, which saw thousands arrested, add complexity to France's economic landscape as it approaches the 2027 election.