After a strong first quarter for equity markets, the second quarter brings its share of new challenges. The unexpected announcement
from OPEC+ to cut oil production did not provoke panic in stock markets, with the main stock markets closing the day up, but caution is still the name of the game. The ISM manufacturing index, released yesterday in the United States, confirms that the Fed's efforts to rein in inflation are working. For the fifth consecutive month, the index is sitting below 50, its lowest level since May 2020, signaling a contraction in the sector. Rising interest rates and a growing sense that a recession could happen are starting to weigh heavy, though.
The greenback continues to fall against other major currencies, while gold has reached its highest level in two years.
from OPEC+ to cut oil production did not provoke panic in stock markets, with the main stock markets closing the day up, but caution is still the name of the game. The ISM manufacturing index, released yesterday in the United States, confirms that the Fed's efforts to rein in inflation are working. For the fifth consecutive month, the index is sitting below 50, its lowest level since May 2020, signaling a contraction in the sector. Rising interest rates and a growing sense that a recession could happen are starting to weigh heavy, though.
The greenback continues to fall against other major currencies, while gold has reached its highest level in two years.