The first day of June should’ve brought us the US default. Unsurprisingly, the US House passes the debt ceiling bill at the latest possible moment.
Weaker Chinese economy will impact the global economy and markets
Financial experts at Danske Bank suggest that there’s an ascending risk for global markets because a dipping Chinese economy will have a devastating impact on the global economy as well as markets.
No one denies that China happens to be the primary contributor to the world economy, generating one-third of global surge. The Asian country acted as a main driver behind the global revival in 2016. Commodity exporting emerging markets derived benefits from both higher volumes as well as prices, while developed markets witnessed a surge in exports to China and also other emerging markets. With the Chinese economy decreasing this year, the lift to the world economy rebounds and it’s a huge reason why financial analysts look for a high in the PMI cycle in H1.
The steep ascend in commodity prices observed in 2016 was pulled mostly by higher Chinese activity. Well, with Chinese companies consuming approximately 50% of global metals, this Asian country appears to be a number one driver of commodity prices. Moreover, for the last few months, both metal and crude prices have gone down, which could be explained by the softer Chinese economy.
About 24% of global central banks intend to increase gold reserves in 2023. Rising inflation, geopolitical turmoil, and worries about interest rates are reasons to increase gold reserves.
Greetings to a brand new week full of events, economic releases and US debt frictions. We are here to tell you everything you need to know!
The CAD is dominating the markets after the key rate increase! Read the full report to learn more about trading opportunities with the Canadian Dollar!
Saudi Arabia agreed to cut oil production. What will happen with the oil price now?
The situation on the labor market still looks optimistic. Today we expect the Unemployment rate data. 3.5% is expected.