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Tuesday, October 8, 2024

Investors doubt the outlook for the global economy prediction for 2021

World stock markets on Monday mostly declined on negative expectations of investors about the prospects for economic recovery. American indices rose within 2% on Friday after the publication of statistics on employment in the United States. Unemployment in the country in February fell to 6.2% from 6.3% in January, and the number of people employed in non-agricultural sectors of the economy increased by 379,000. At the same time, the market expected that unemployment would remain at the January level of 6.3%, and the number of people employed in the non-agricultural sector would grow by only 182 thousand.

Also Read: Gold Price Prediction 2021

At the same time, President Joe Biden recalled that in the United States there are now 9.5 million jobs less than a year ago, and that in such a situation it will take two whole years to restore the number of jobs in the country. Therefore, according to him, Congress needs to adopt an economic support package in the amount of almost $ 2 trillion as soon as possible.

Also Read: Oil Price Prediction 2021

Asian stock exchanges on Monday again demonstrate a decline following the US indices. The negative to the markets of the region was also brought about by the words of the head of the US Federal Reserve System (FRS) Jerome Powell, who gave a signal for a possible increase in rates and the curtailment of government support in the future due to the recovery of economic activity and accelerated inflation. Powell said that the “opening” of the economy could lead to higher prices. As a result, yields on US government bonds and the dollar strengthened, while stock markets and precious metal prices showed a decline.

Investors also drew attention to news from the annual session of the National People’s Congress, at which expectations were voiced that China’s GDP growth rate in 2021 will be more than 6%, and inflation will exceed 3%. European markets also look uncertain on Monday, reacting to negative signals from Asian and American markets.

Stella Mason
Stella Mason
Stella Mason is a artist and blockchain enthusiast. She got in touch with crypto in 2016, but the fire really lit in 2017. Professionally she's a content optimization expert and worked for press agencies and video production companies, always with a focus on the video games & tech industry.

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