Economic slowdown and mixed signals on global markets
The OECD (Organisation for Economic Co-operation and Development) has issued a significant warning about the global economy. According to the organization, global growth will slow down rather than accelerate. This is mainly due to the situation in the United States, where economic activity is becoming less robust than before.
Despite this somber message about the global economy, European stock markets showed a positive picture around noon on Monday. Prices in Europe rose after strong economic figures from China were announced. Investors reacted enthusiastically to this news from Asia, leading to green figures on European markets.
In the United States, the situation on the stock market was less clear. There were conflicting reports regarding the opening of Wall Street on Monday. While some forecasts pointed to a flat to slightly higher start, other sources indicated that the markets might open slightly lower. This uncertainty shows that American investors are currently cautious.
The caution in the US is supported by new economic data. US retail sales rose less in February than experts had expected. Additionally, industrial activity in the New York region has decreased significantly. The so-called Empire State index fell considerably in March, indicating less growth in the manufacturing sector.
The US housing market is also showing a decline. Confidence among homebuilders in the United States fell further in March. A small bright spot was that US business inventories rose in January. This increase was exactly as analysts had previously expected, providing some stability.
Finally, there is news about gold and cryptocurrencies. The bank UBS expects the price of gold to rise further, after the price recently already exceeded 3,000 dollars per troy ounce. In the crypto market, there is a lot of attention on Ripple (XRP). Analysts are watching tensely to see if this coin will soon make a major move up or down, as the price must now choose a clear direction.