Global economy slows down as stock markets search for direction
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 in the coming period instead of accelerating. Especially in the United States and Europe, economic activity is less robust than before, which is affecting the rest of the world.
Despite this gloomy report, 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 European investors a bit more confidence, causing markets to trade in the green.
In the United States, the situation on the stock market is less clear. There were varying reports regarding the opening of Wall Street on Monday. While some analyses pointed to a flat to slightly higher start, so-called 'futures' showed a slightly lower opening. This indicates a cautious attitude and uncertainty among American investors at the start of the new week.
New figures on the US economy show a mixed picture. Retail sales rose less sharply in February than experts had expected, meaning consumers are spending less money. On the other hand, inventories at US companies grew in January exactly as expected, indicating that companies' logistical planning remains stable.
However, there is also less favorable news from specific sectors in America. Confidence among homebuilders fell further in March, showing that the housing market is under pressure. Additionally, industrial activity in the New York region, as measured by the Empire State index, decreased significantly this month. This is a sign that production in that region is currently struggling.
Finally, there is news about alternative investments such as gold and cryptocurrencies. The bank UBS expects the price of gold to rise further, after it recently reached a record high of over $3,000 per troy ounce. In the crypto market, investors are tensely watching Ripple (XRP). This coin is at a critical point, and analysts are wondering whether a major breakout in the price will occur soon.