Economic Overview: Global Slowdown and Uncertainty on Stock Markets
The OECD (Organisation for Economic Co-operation and Development) warns that global economic growth will slow down. Instead of accelerating, the global economy appears to be decelerating. According to the organization, this is mainly due to economic developments in the United States, where growth is less robust than previously hoped.
Despite the OECD's somber forecast, European stock markets showed a positive picture around midday. Prices were higher, partly thanks to strong economic figures from China. These positive reports from Asia gave investors in Europe enough confidence to buy shares, leading to a general rise in the markets.
In the United States, however, the picture on the stock market was less clear-cut. There were mixed signals regarding the opening of Wall Street; while some analysts predicted a slightly higher start, other figures pointed to a lower opening. This uncertainty was reinforced by the Empire State index, which showed that industrial activity in the New York region fell significantly in March.
Other economic figures from the US were also not entirely positive. US retail sales rose less than expected in February, indicating that consumers are becoming more cautious with their spending. At the same time, business inventories were found to have risen in January. This increase was exactly in line with economists' expectations.
The US housing market is also showing signs of weakness. Confidence among homebuilders in the United States fell further in March. This suggests that the construction sector is struggling, likely due to ongoing economic pressure and the situation in the financial markets.
Finally, there is news about gold and cryptocurrencies. The bank UBS expects the price of gold to continue rising, after it recently reached a record high of more than $3,000 per troy ounce. In the crypto market, all attention is focused on Ripple (XRP). Experts are analyzing whether this coin will soon make a major move up or down, as the market is currently waiting for a clear direction.