Wall Street poised for modest rebound as economic pressure continues


At the same time, cryptocurrencies are continuing their decline amid a series of market crashes. On Monday, Celsius Network, an experimental cryptocurrency bank, froze withdrawals, sending depositors into a panic. Bitcoin plunged to its lowest point since 2020. According to CoinMarketCap, it fell 7 percent early in the morning in New York City in the past 24 hours.

Investors have tried to understand what is happening in the global economy.

The World Bank issued a stark warning last week that a recession is hard to avoid for many countries. On Monday, credit rating agency Fitch lowered its 2022 forecast for global gross domestic product, or GDP, to 2.9 percent, from a March estimate of 3.5 percent. These are just the latest in a series of global economic downturns, as Russia’s ongoing war in Ukraine has already strained global supply chains, disrupts trade and drives up prices of oil, wheat, metals and other essential commodities.

As inflation rises, central banks around the world, from Australia to Canada, have moved to raise rates. On Thursday, the Bank of England is expected to raise its benchmark rate for the fifth consecutive meeting. Last week, the European Central Bank said it would raise its rates next month for the first time in more than a decade.

On Tuesday, a German investor confidence measure rose slightly but still remained deep in negative territory as economic growth faces a significant number of risks.

Judging by the collapse in markets this week, but as investors face the risk of shocks and awe from the Fed and a series of rate hikes in the eurozone, it’s doubtful whether the rise in investor confidence “will be sustained” Claus Vistesen, an economist at Pantheon Macroeconomics, wrote in a note.

As the global economic outlook weakens, traders are wondering how far central banks can go in raising rates to contain inflation without exacerbating stress for businesses and households.

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