Global economy slows down as stock markets and gold prices move
The OECD (Organisation for Economic Co-operation and Development) has warned that global economic growth will slow down. Instead of an acceleration, the organisation sees the global economy growing less rapidly. This is partly due to the significant influence of the US economy on the rest of the world.
Despite this somber report from the OECD, European stock markets were in the green around midday. This was mainly due to positive economic figures from China. Investors in Europe reacted enthusiastically to these figures, causing prices to rise in the morning.
In the United States, the picture on the stock market was somewhat more uncertain. There were various reports regarding the opening of Wall Street on Monday. While some predictions pointed to a higher start, other figures (futures) showed a slightly lower opening. This led to a wait-and-see attitude among many American investors.
Economic figures from the US were indeed mixed. Retail sales rose less in February than experts had expected. Additionally, there was a significant drop in the Empire State index, meaning that industrial activity in the New York region decreased sharply in March. However, US business inventories rose in January exactly as expected.
The housing market in the United States is also currently struggling. Confidence among American homebuilders fell further in March. This is an important signal for the economy, as the construction sector often indicates the financial health of a country.
In addition to the stock markets, there is also news about gold and cryptocurrencies. The bank UBS expects the gold price to rise further, after it already peaked above 3,000 dollars per troy ounce on Friday. In the world of cryptocurrency, experts are looking at Ripple (XRP). The market is waiting for a clear direction for this coin: is a major breakout coming soon, or will the price remain stable?