Economic uncertainty and fluctuations in global markets
The OECD (Organisation for Economic Co-operation and Development) has issued a major warning about the global economy. According to the organization, global economic growth will slow down rather than accelerate. This is mainly due to the situation in the United States, where growth appears to be weaker than previously hoped.
Despite this cautious message from the US, European stock markets showed a positive picture around midday. Prices in Europe rose after strong economic figures from China were announced. These Chinese figures gave investors in Europe more confidence in international trade, leading to higher prices on the trading floors.
In the United States itself, the situation on the stock market is currently less clear. There are various signals regarding the opening of Wall Street at the start of the week. While some predictions point to a flat to slightly higher start, other figures (the so-called 'futures') show a slightly lower opening. This indicates a wait-and-see attitude among American investors.
Various economic reports from the US support this picture of uncertainty. US retail sales rose less in February than experts had expected. In addition, industrial activity in the New York region, measured by the Empire State index, fell significantly in March. This indicates a clear decline in industrial production in that area.
The US housing market and inventories also show interesting developments. Confidence among homebuilders in the US fell further in March, indicating that the sector remains cautious. On the other hand, business inventories in the United States rose in January. This increase was exactly as economists had previously predicted.
In the precious metals market, there is optimism. The bank UBS expects the gold price to rise further in the coming period. This advice comes after the price of gold reached a peak above $3,000 per troy ounce last Friday. Gold is seen by many investors as a safe investment when other markets are turbulent.
Finally, there is news from the world of cryptocurrency. The digital currency Ripple (XRP) is at an important point and must choose a direction. Analysts are keeping a close eye on the coin to see if there will be a 'breakout' to a higher price. However, the crypto market remains a playing field with both great opportunities and great risks for investors.