US economic growth has slowed sharply, markets are growing: what you need to know in the morning

Briefly about the main points on international markets.

Photo: pixabay.com 0 US stock indexes rose on Thursday

The S&P 500 added about 2%, the high-tech Nasdaq added 2.4%, and the Dow Jones index added 1.6%.

Strong quarterly reports from American technology giants supported the growth of major US stock indexes.

Meanwhile, the shares of regional banks have somewhat stabilized after a recent fall amid First Republic Bank’s deposit retention problems.

Asian markets are mainly growing

The broad index of Asian shares (excluding Japan) MSCI AC Asia ex Japan Index rose today by 0.5%, Japan’s Nikkei added 0.9%, South Korea’s Kospi increased by 0.1%, China’s Shanghai Composite and Hong Kong’s Hang Seng traveled by 0 .7% and 0.9%, respectively, and the Singapore STI decreased by 0.2%.

Markets in the Asia-Pacific region rose significantly on Friday thanks to strong corporate reports from American IT giants.

Investor sentiment in Asia supported the Bank of Japan’s decision to leave its monetary policy unchanged.

Economic growth in the United States slowed sharply in the first quarter of 2023

According to the US Department of Commerce, the country’s gross domestic product in January-March 2023 grew by 1.1% year-on-year, compared to growth of 2.6% in the previous quarter.

Economists polled by Dow Jones expected quarterly growth in US GDP at the level of 2%.

The report of the US Department of Commerce states that the slowdown in GDP growth was caused by the reduction of expenses by enterprises, as well as a decrease in the volume of investments in inventories. This is due to expectations of a fall in consumer demand at the end of this year against the backdrop of higher borrowing costs, as interest rates in the country continue to rise.

Also, the slowdown in economic growth in the US in the first quarter of 2023 was due to the slowdown in the pace of construction of new houses.

The report of the US Department of Commerce also notes that the American economy has lost momentum for growth in recent months, and many economists predict a recession in the country at the end of this year.

Oil prices are close to falling for the sixth month in a row

Brent futures were down 1.3% at the beginning of the month, to $78.72 per barrel, while WTI contracts fell by about 0.7% to $75.14.

The price of oil has been falling on a monthly basis since November 2022, which is the longest period of decline in more than eight years, according to Bloomberg.

The reason for the recent decrease in the price of oil is concern about the slowdown in economic growth in the USA and Asian countries, which may affect the prospects of global demand for energy resources this year.

Conference “Invest Talk Summit” Find out how to make money on investments in 2023-2024! Details on the website.

Promo code for a 10% discount: minfin 10.

🕵️ We created a small poll to get to know our readers better.

💛💙Your answers will help us become better, pay more attention to topics that are interesting to you. 🤗 We will be grateful if you find a minute to answer our questions.

Source: Ministry of Finance

Views: 6