AI heats up market sentiment. What will the week bring?

Hopes and optimism related to further negotiations on raising the US budget limit support further increases in stock indices. At the same time, macroeconomic data published last week show that the US economy is systematically, though without fireworks, losing momentum. Will artificial intelligence be a revolution like the Internet?

Latest data from China not so optimistic anymore like at the beginning of the year. The "opening index" or activity of Chinese airlines seems to be no longer growing. There have also been reports that the Chinese leadership intends to focus on the country's strategic interests at the expense of economic growth.

Innovation will drive growth

In the US, retail sales data turned out to be the key, which turned out to be quite… mixed. Although in nominal terms the value of sales continues to grow fast enough to maintain a certain price pressure, in real terms (i.e. taking into account the level of inflation) show some slowdown. After a temporary improvement, data on the housing market also deteriorated - sales in the US are starting to decline again. It is also worth noting that in the previous cycle, the return of the property sales index occurred well before the recession.

So are we facing the same? Long-term economic growth is a function of labour, capital and innovation. Currently, the global economy is heavily leveraged, and the ongoing tightening of monetary policy by major central banks only complicates the situation. At the same time, Japan, Europe, China and in the near future probably also the USA are struggling with the negative effects of unfavorable demographic changes. In such a situation, economic growth can be driven by innovation in the long run. Artificial intelligence may be a key driver of the new wave of change.

In today's webinar:

• What do macro data tell us about the current situation?
• What next for the currency market?
• AI – fad or generational change?

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

CFDs are complex instruments and involve a high risk of a quick loss of cash due to leverage. 76% of retail investor accounts record monetary losses as a result of trading CFDs with this CFD provider. Consider whether you understand how CFDs work and whether you can afford the high risk of losing your money.