Global economy slows as stock markets search for direction
The global economy is facing a period of slower growth. According to the OECD, global economic activity will decrease rather than accelerate in the coming period. This slowdown is primarily caused by economic developments in the United States and China, the world's two largest economies.
Despite the OECD's warning, European stock markets showed a positive picture around noon. Prices were higher, partly thanks to strong economic figures from China. These reports gave European investors enough confidence to continue buying shares.
In the United States, however, the mood on the stock market is more cautious. Initial signals for Wall Street point to a flat to slightly lower opening. Investors are waiting for more clarity on the economic course, meaning US markets have not yet chosen a clear direction at the start of the trading day.
New data from the US shows that the economy there is under pressure. Retail sales in February rose less than analysts had expected. Furthermore, industrial activity in the New York region, measured by the Empire State index, fell significantly in March. This indicates a decline in production in that region.
The US housing market and business inventories also show significant changes. Confidence among US homebuilders fell further in March, indicating that the construction sector is struggling. At the same time, business inventories rose in January exactly in line with economists' expectations.
There is also a lot of movement in the commodity and crypto markets. Bank UBS expects the gold price to continue rising after it recently reached a record high of more than $3,000 per troy ounce. Additionally, analysts are looking at the cryptocurrency Ripple (XRP). The coin is at a key point and must choose a direction soon, with a major price change possible.