Houthi attacks on merchant vessels in the Indian Ocean are raising alarms over global shipping safety and trade, reports Singapore's Maritime Fairtrade.

The unrest has prompted many companies to avoid critical maritime routes, inflating costs and transit times. The attack on the Portuguese-flagged 14,814-TEU MSC Orion could escalate disruptions, with implications for global inflation and economies reliant on the Suez Canal.

The report also highlighted wider economic developments. China faces weak consumer spending amid a real estate crisis, while the US economy grew only 1.6 per cent in the first quarter as inflation remained above target.

Eurozone inflation has stabilised at 2.4 per cent, with GDP growth of 0.3 per cent driven by southern European nations.

Taiwan's semiconductor sector continues to boom, contributing 40 per cent of exports and lifting GDP by 6.5 per cent, though over-reliance poses risks.

Diplomatic tensions persist between the US and China, with Washington pressing ByteDance to divest TikTok's US operations and imposing sanctions on firms linked to Russia.

Vietnam has attracted record foreign investment but corruption crackdowns may deter future growth. The US has approved a US$95 billion aid package for allies including Ukraine, Israel and Taiwan.

Key upcoming events include South Africa's elections, the Federal Reserve's next meeting on interest rates, and the G7 Summit in Italy on June 13.