Economic slowdown and mixed figures on global stock markets
The OECD (Organisation for Economic Co-operation and Development) has issued a significant warning about the global economy. According to the organization, global economic growth will slow down rather than accelerate in the coming period. Developments in the United States, in particular, play a major role here, as growth there is less robust than previously hoped.
Despite this somber news, European stock markets showed a positive picture around midday. Prices in Europe rose after strong economic figures from China were announced. These positive signals from Asia gave investors in Europe enough confidence to continue buying shares.
In the United States, the picture on the stock market was less clear-cut. Predictions for the Wall Street opening fluctuated throughout the day. While some figures initially pointed to a slightly lower start to the trading day, later reports indicated that the markets would likely open flat or even slightly higher.
Several reports on the US economy were also released today, urging caution. For instance, retail sales in February rose less than analysts had expected. Additionally, there was a significant drop in the Empire State index, meaning that industrial activity around New York decreased sharply in March.
The US housing market is also showing a negative trend. Confidence among homebuilders in the US fell further in March. On the other hand, there were figures on business inventories in the United States; these rose in January exactly in line with economists' expectations, providing some stability.
Finally, there is significant movement in the commodity and cryptocurrency markets. The bank UBS expects the gold price to rise further, after it recently reached a record high of more than $3,000 per troy ounce. At the same time, investors are looking with great interest at the cryptocurrency Ripple (XRP). Analysts expect this coin to make a major move or breakout in the market soon.