Economic Overview: Global Slowdown and Uncertainty on Stock Markets
The Organisation for Economic Co-operation and Development (OECD) has warned that global economic growth will slow down. Instead of an acceleration, the organisation expects global economic activity to grow less rapidly. This is partly due to the economic situation in the United States, where growth is also declining.
Despite this gloomy forecast, European stock markets showed a positive picture around midday. Prices in Europe rose after strong economic figures were released from China. These positive reports from Asia gave investors in Europe a bit more confidence in international trade.
In the United States, however, the mood on the Wall Street stock exchange was uncertain at the start of the day. Various reports gave a mixed picture of the market: some forecasts pointed to a slightly higher start, while other futures expected a slightly lower opening. Investors therefore remained cautious at the start of the new trading week.
New figures on the US economy were also released that were not very favorable. Retail sales rose less in February than experts had expected. In addition, there was a significant drop in the Empire State index, meaning that industrial activity in the New York region declined sharply in March.
There is also less optimism in the US housing market. Confidence among homebuilders in the United States fell further in March. On the other hand, US business inventories rose in January exactly as economists expected, indicating that inventory levels in trade remain stable.
Finally, there is a lot of movement in the gold and cryptocurrency markets. The bank UBS expects the price of gold to rise further, after it recently reached a record high of more than $3,000 per troy ounce. Meanwhile, investors are looking with excitement at the cryptocurrency Ripple (XRP). This coin is at a critical point, and analysts are waiting to see if a major price change or breakout will occur soon.