Economic Overview: Global Slowdown and Uncertainty on the Stock Markets
The OECD (Organisation for Economic Co-operation and Development) warns that global economic growth will slow down. Instead of accelerating, the organization sees global economic activity decreasing. This is partly due to the situation in the United States, where the economy is growing less rapidly than before.
Despite the OECD's gloomy predictions, European stock markets showed a positive picture around noon. Prices rose after strong economic figures from China were released. These figures gave investors in Europe more confidence in international trade and led to higher prices on European markets.
In the United States, the mood on the stock market was less clear. Predictions for the opening of Wall Street on Monday fluctuated throughout the day. While some signals initially pointed to a slightly lower start, later figures showed a flat to slightly higher opening. Investors are waiting anxiously to see how the American market will develop further.
Important figures on the US economy were also released that influenced sentiment. Retail sales rose less in February than experts had expected. Additionally, there was negative news from the New York region: the Empire State index, which measures manufacturing activity, fell significantly in March. This points to weaker production in that important region.
The housing market in the United States is also currently struggling. Confidence among US homebuilders fell further in March, indicating that the sector is facing challenges. On the other hand, US business inventories grew in January exactly as expected. This means that companies have their inventories well under control for the time being.
Finally, there is a lot of movement in alternative investments such as gold and cryptocurrencies. The bank UBS expects the gold price to rise further, after it recently reached a record high of more than 3,000 dollars per troy ounce. In the crypto market, there is a lot of attention on Ripple (XRP). Analysts are watching to see if this coin will soon make a big jump in value, as the market currently offers many opportunities and risks.