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HomeEconomic Flash News: May 26, 2023

Economic Flash News: May 26, 2023

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Global Economy Shows Signs of Slowdown

The global economy shows signs of slowing down as the war in Ukraine, rising inflation, and supply chain disruptions weigh on growth.

  • The U.S. economy grew at an annual rate of 1.5% in the first quarter of 2023, down from 6.9% in the fourth quarter of 2022. The slowdown was driven by several factors, including the war in Ukraine, rising inflation, and supply chain disruptions.
  • Inflation in the Eurozone reached a record high of 8.1% in May 2023, driven by increasing energy and food prices. The European Central Bank is expected to raise interest rates in July to cool inflation.
  • China’s economy grew at an annual rate of 4.8% in the first quarter of 2023, down from 8.1% in the fourth quarter of 2022. The slowdown was driven by a number of factors, including the COVID-19 pandemic and the war in Ukraine.

U.S. Stock Market Slumps on Inflation Fears

The U.S. stock market slumped on Thursday as investors worried about the impact of rising inflation on corporate earnings.

  • The Dow Jones Industrial Average fell 3.1%, the S&P 500 fell 3.6%, and the Nasdaq Composite fell 4.1%.
  • Investors are worried that rising inflation will lead to higher interest rates, which could slow economic growth and hurt corporate earnings.
  • The sell-off in stocks comes as the Federal Reserve is expected to raise interest rates several times this year to cool inflation.

Oil Prices Hit 11-Week High.

Oil prices hit an 11-week high on Thursday as investors worried about the impact of the war in Ukraine on global oil supplies.

  • West Texas, Intermediate crude oil futures rose to $122.11 per barrel.
  • The war in Ukraine has disrupted global oil supplies, and investors are worried that the conflict could escalate, leading to even higher oil prices.
  • The rise in oil prices adds to inflationary pressures, which are already at a 40-year high in the United States.

Gold Prices Rise on Safe-Haven Demand

Gold prices rose on Thursday as investors sought out safe-haven assets amid concerns about the global economy.

  • Gold futures rose to $1,856.50 per ounce.
  • Investors are worried about the impact of the war in Ukraine, rising inflation, and supply chain disruptions on the global economy.
  • Gold is seen as a safe-haven asset during times of economic uncertainty, and investors are buying gold as a way to protect their wealth.

Bitcoin Prices Fall Below $30,000

Bitcoin prices fell below $30,000 on Thursday as investors continued to sell off risky assets.

  • Bitcoin is down more than 50% from its all-time high of $68,789, reached in November 2021.
  • Investors are worried about the impact of the war in Ukraine, rising inflation, and supply chain disruptions on the global economy.
  • Bitcoin is risky, and investors are selling it off as they seek safer investments.

Conclusion

The global economy shows signs of slowing down as the war in Ukraine, rising inflation, and supply chain disruptions weigh on growth. Investors are worried about the impact of these factors on corporate earnings, and the stock market has been volatile in recent weeks. Oil prices are at an 11-week high, and gold prices are rising on safe-haven demand. Bitcoin prices have fallen below $30,000 as investors continue selling risky assets.


Photo: Themeforest

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This article was written by the editorial team of Financeflashnews. We strive to provide you with accurate and up-to-date information from the world of finance and investment. If you find any errors in the article, please let us know at corrections@financeflashnews.com. Your feedback is valuable to us and will help us improve the quality of our content.

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