Major Economies Heading in Different Directions, Portending 'Decoupling' of US, Europe, and China

The world's major economies - the US, Europe, and China - are on diverging growth trajectories, leading to a "decoupling" in the global economy.

The US economy continues to show resilience with strong GDP growth, cooling inflation, and a booming stock market.

Europe faces a weaker growth outlook, with anemic expansion overall and particular weakness in Germany.

China confronts multiple challenges including real estate woes, deflationary pressures, and unfavorable demographics.

The differing economic fortunes have played out in equity markets, with China underperforming while US stocks hit new highs.