Global markets in perspective.
The US economy expanded by an annualised 2.6% quarter-on-quarter in the fourth quarter of 2022, slightly below initial estimates of a 2.7% expansion, taking total US gross domestic product (GDP) to 2.1% for 2022.
We started this week with markets divided on whether the United States (US) Federal Reserve (Fed) would proceed to hike interest rates in the face of the banking crisis.
Last Friday, Silicon Valley Bank (SVB), a lender to the Bay Area’s tech startups, venture-capital and private-equity firms, failed. This marked the biggest bank collapse since 2008
The US dollar is the preferred safe-haven asset in times of rising interest rates.
The relationship between the United States (US) and China is highly complex. The two countries have a history of both cooperation and rivalry which spans decades. They are dependent on each other for trade, investment, military alliance, and cultural exchange.
Following South African President Cyril Ramaphosa’s State of The Nation Address (SONA), the focus was on the national budget to provide guidance and clarity on numerous challenges impacting the economy. Wednesday’s budget speech by Finance Minister, Enoch Godongwana, offered some answers, particularly around the country’s primary electricity supplier Eskom and South Africa’s electricity crisis.
Consistently robust economic data out of the United States (US), coupled with stronger than expected Consumer Price Index (CPI) numbers, pushed markets back into risk-off mode this week. The release of the annual US inflation rate on Tuesday sparked fresh concerns, as data showed that inflation dipped only slightly to 6.4% in January from 6.5%
Turkey is a major player in global economics and trade. The country is listed by the International Monetary Fund (IMF) as the world’s 20th largest economy. Turkey also plays an important role as both a transit hub and trading partner to many countries in Europe, Asia, and Africa.
This week, participants across financial markets waited expectantly for the latest round of interest rate hikes from the US Federal Reserve (Fed), the European Central Bank (ECB) and the Bank of England (BoE).
Thursday saw the release of key United States (US) gross domestic product (GDP) data. These numbers will set the tone for the upcoming interest rate decision by the US Federal Reserve (Fed).
We kicked the year off with The World Economic Forum (‘WEF’), an annual event that takes place in the Alpine town of Davos, Switzerland, which ends today.