Economic Overview: Global Economy Slows as Stock Markets React Mixedly
The OECD, a major international organization, expects global economic growth to slow down. Instead of growing faster, the pace is decreasing worldwide. According to the organization, this is primarily due to economic developments in the United States, which have a significant impact on the rest of the world.
Despite this outlook, European stock markets were in the green around midday. This positive sentiment was mainly driven by strong economic figures from China. Investors in Europe reacted enthusiastically, leading to higher prices on most European markets at the start of the week.
In the United States, the picture on the stock markets was less clear. There were varying predictions for the opening of Wall Street on Monday. While some analysts expected a flat to slightly higher start, other figures pointed toward a slightly lower opening. As a result, the market remained uncertain at the beginning of the trading day.
New figures on the US economy were also released that were not very positive. Retail sales in February rose less than experts had expected. Additionally, there was bad news from the manufacturing sector in the New York region. The so-called Empire State Index fell significantly, meaning that activity in that sector has sharply declined.
The housing market in the United States is also currently struggling. Confidence among American homebuilders fell further in March. On the other hand, inventories at American companies rose in January exactly as expected. This figure on business inventories was one of the few statistics that was precisely on track.
In the commodities market, there is much attention on gold. The bank UBS expects the price of gold to rise further in the coming period. Last week, the price of gold already reached a record high of more than $3,000 per troy ounce. Investors often choose gold when they are concerned about economic stability.
Finally, there is news from the world of cryptocurrencies. The digital currency Ripple (XRP) is at an important crossroads. Analysts are watching to see if the coin will soon make a major move up or down. The crypto market thus remains a place of many opportunities, but also great risks for those who invest in it.