The financial market has always acted as a kind of thermometer of the economy, in an attempt to anticipate what is to come. The high volatility of stock exchanges, which has been in the news for some time, may raise the question: did the thermometer break or is it the market that is reading the temperature wrong?
Consumer inflation in the United States released this week, which proved more resilient than expected, puts a third hypothesis on the table: maybe the thermometer was working, and the reading was correct, but investors decided to bet against it.
It is an analysis that is echoed by the international press, as engaging in the so-called “bull market”, betting that the worst was over with generous doses of optimism, made little or no sense from an economic point of view. . The North American, Chinese and European activity data reinforced the idea that there is still an ongoing crisis that will not be so easily circumvented – after all, it is the result of a pandemic followed by war.
On Thursday (15), both the International Monetary Fund (IMF) and the World Bank issued warnings about this posture of swimming against the tide. Pessimism has returned for good, as officials agreed that downside risks to the global economy continue to dominate the outlook and that some countries are in danger of falling into recession in 2023.
This Friday’s episode deals with expectations for Central Banks’ decisions and what the future holds for the global economy. Presented by Thais Herédia and Priscila Yazbek, CNN Money presents a balance of news issues that influence markets, finances and the direction of society and power dynamics in Brazil and worldwide.
*Posted by Tamara Nassif
Source: CNN Brasil
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