The euro imitates her and falls 0.2% to 0.99. This reaction comes in parallel to the fall in European stocks as investors prepare for a rise in interest rates in the United States and the projection of a sharp slowdown in activity.
the yuan exceeds a critical threshold of 7 units per dollar for the first time in over two years overnight, hitting a low of 7,035 in the Asian session. The data showed that China’s real estate sector contracted further last month.
The japanese yen It advances 0.3% and stands at 143.12. According to market analysts, the yen could fall to a three-decade low before the end of the year.
The World Bank and International Monetary Fund For their part, they warn about the slowdown in economic activity, which coincides with the projection of the International Energy Agency (IEA) that projects a drop in the demand for fuels for the last quarter. The chief economist of the WB, Indermit Gill, He said on Thursday that he was worried about a period of low growth and high inflation in the world economy.
The IMF said downside risks continue to dominate the global economic outlook, but that it is too early to say whether there will be a widespread global recession, while the entity’s managing director, Kristalina Georgievasked the central banks for persistence in the fight against inflation.
The European Central Bank expects that an economic slowdown in the euro zone will not be enough to control inflation, and the bank would have to continue raising interest rates.
“Now we see that the data confirms that the economy is slowing down,” he said. Axel Rudolph, market analyst at IG Group in dialogue with Reuters. “The expectation is that equities will fall back below their March lows. We are in an environment where central banks hike rates aggressively, historically this has always led to bear markets.”
Source: Ambito
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