First half of 2023 ended with a positive outlook in the global economy, despite the high interest rates and discouraging speeches from the central banks of the US and Europe. In this article, we will see how various risk assets have performed above expectations, how Bitcoin has been behaving, and also how Apple recently reached historic stock prices.
As the first half of 2023 comes to a close, we are left with unexpected and surprising numbers!
Even with the surprisingly high interest rates and the presidents of the major central banks hinting at going even further, investors are not giving in, and a significant portion of risk assets are performing much better than what we have seen since the beginning of the year.
The President of the European Central Bank (ECB), Christine Lagarde, stated in her speech in Sintra, Portugal, at an event that brought together the presidents of the American, Japanese, and English central banks, that the inflation in the Eurozone is very high and will remain at this level for a long time. According to Lagarde, the inflation target of 2% will be achieved, regardless of how much interest rates need to rise and for how long they need to be kept at that level. She believes that the impact of the interest rate hike has not been felt yet.
Until recently, such a tough speech would have caused a strong negative impact, but apparently, investors are no longer being shaken. The first half of 2023 ended on a positive note, with a significant increase in European stock markets and futures indices in New York. This year, the S&P500 has risen above 15%, and the Nasdaq above 30%.
We also had strong GDP and employment data from the US, showing a resilient economy despite the restrictive interest rate policy.
In the Eurozone, the CPI was in line with expectations, reaching 5.5% in June. The unemployment rate in the Eurozone also remained stable at 6.5% in June, as expected.
Bitcoin Bitcoin remains strong at the $31k resistance level, firmly marking the top of the consolidation zone, where it is showing signs of a possible breakout that could happen by the end of the week, after the release of the US Payroll data.
Apple Shares We cannot fail to mention Apple’s new record, as on Friday it reached the incredible market value of $3 trillion, becoming the first American company, and the first company in the world, to achieve such a feat.