Global Economy Heads Into Year-End With Diminished Momentum

(Bloomberg)  The global economy is headed into the final stretch of 2018 in weakened shape, handing investors renewed reason to question how much central banks will be able to tighten monetary policy next year. Fresh data from the world's third and fourth largest economy on Monday added to the concern. A manufacturing gauge in Japan dropped to the lowest since early 2016, and business confidence in Germany fell for the third month. The slowdown comes against the backdrop of volatile markets and a burgeoning trade war that has implications for monetary policy worldwide. The  European Central Bank has a crucial meeting in December where its due to confirm the end of next asset purchases, a key crisis era tool. The US federal reserve looks set to raise interest rates again next month but may be more cautious in 2019.