European Inflation at Target China Holds Rates Aluminum Under U.S. Tariff Pressure
Global markets today witnessed a mix of economic developments;
Eurozone inflation reached 2% in line with the central bank’s target,
while the People’s Bank of China kept interest rates unchanged,
and aluminum prices fell to a two-week low under pressure from U.S. tariffs.
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Europe
Eurozone inflation hits 2% in July
Final data released by Eurostat on Wednesday confirmed that Eurozone inflation rose to 2% year-on-year in July 2025,
matching the preliminary reading and market expectations, and aligning with the European Central Bank’s target.
Core inflation — excluding energy and food prices — settled at 2.3%, its lowest level since January 2022,
reinforcing bets that price pressures in the region are gradually easing.
China
PBOC keeps interest rates unchanged for the third month
The People’s Bank of China (PBOC) held interest rates steady for the third consecutive month,
signaling that Beijing is focusing more on fiscal easing and targeted measures rather than direct monetary policy tools.
On Wednesday, the central bank kept the one-year loan prime rate at 3%,
while maintaining the five-year loan rate — the key benchmark for mortgages — at 3.5%.
Despite a string of disappointing economic data recently, Chinese authorities stressed they are in no rush to provide further monetary stimulus.
This stance is partly attributed to easing trade tensions between Washington and Beijing and the extension of the trade truce,
which reduced the urgency for additional easing measures.
Aluminum
Aluminum prices drop to two-week low after expanded U.S. tariffs
Global aluminum prices fell on Wednesday to their lowest in more than two weeks
after the United States announced a 50% tariff expansion to cover products made from the lightweight metal.
On the London Metal Exchange, the most actively traded aluminum futures dropped 0.95% to $2,563.50 per ton.
In the Shanghai Futures Exchange, the most traded contract closed slightly down by 0.1% at 20,570 yuan ($2,864.38) per ton,
after hitting its lowest level since August 4 at 20,430 yuan during the session.
The U.S. Department of Commerce announced on Tuesday that tariffs on more than 400 metal products
— including wind turbines and household appliances — would be raised,
as part of expanded trade restrictions on steel and aluminum.
European Inflation at Target China Holds Rates Aluminum