The euro imitate her and falls 0.2% to 0.99. This reaction comes in parallel with the decline in European stocks as investors prepare for higher interest rates in the United States and anticipation of a sharp slowdown in activity.
yuan exceeds a critical threshold 7 units per dollar For the first time in more than two years overnight, it hit a low of 7,035 in the Asian session. The data showed that the Chinese real estate sector contracted further last month.
The Japanese Yen It rose 0.3% and settled at 143.12. According to market analysts, the yen may drop to its lowest level in three decades before the end of the year.
The The World Bank and the International Monetary Fund For their part, they warn of slowdown in economic activity, which overlaps with expectations of the International Energy Agency (IEA) which expects a decline in fuel demand in the last quarter. Chief Economist at the World Bank, Endermite Gill, On Thursday, he said he was concerned about a period of low growth and high inflation in the global economy.
The International Monetary Fund He said downside risks still dominate the global economic outlook, but it is too early to say whether there will be a general global recession, while the managing director of the entity said, Kristalina GeorgievHe called on central banks to persevere in the fight against inflation.
The European Central Bank You expect that the economic slowdown in the Eurozone will not be enough to control inflation, and the Bank will have to keep raising interest rates.
“Now we’re seeing the data confirm that the economy is slowing,” he said. Axel Rudolph, market analyst at IG Group in an interview with Reuters. “The expectation is that stocks will fall back below their March lows. We’re in an environment where central banks are aggressively raising interest rates, and this has historically always led to bear markets.”