Economic uncertainty and mixed signals on global markets
The OECD (Organisation for Economic Co-operation and Development) has issued a significant warning about the global economy. According to the organization, global growth will slow down rather than accelerate in the coming period. Particularly due to the economic situation in the United States, international activity is expected to grow less rapidly than previously hoped.
Despite this somber prediction, European stock markets showed positive figures around midday. Prices in Europe rose after strong economic data from China was released. These positive reports from Asia gave investors in Europe extra confidence on Monday, creating an optimistic atmosphere in the markets.
In the United States, however, the picture on the stock market was less clear. There were various reports throughout the day regarding the start of the trading day on Wall Street. While some predictions initially pointed to a higher opening, later figures showed a slightly lower start. This led to a wait-and-see and cautious attitude among many American investors.
Economic data from the US was also not entirely positive. US retail sales rose less in February than experts had previously expected. Additionally, there was a significant drop in the Empire State index, a figure that measures industrial activity in the New York region. This sharp decline points to lower production in that sector.
There is also less optimism to be found in the US housing construction sector at the moment. Confidence among homebuilders fell further in the month of March. A small bright spot in the statistics was that US business inventories rose in January; this increase was exactly as analysts had predicted.
Finally, analysts are looking at 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 over 3,000 dollars per troy ounce. At the same time, there is a lot of attention in the crypto market for the coin Ripple (XRP). Experts are wondering whether this coin will soon make a big leap upward or whether the risks for investors remain too high.