End of optimism? American economy shows signs of weakness

In this edition of International Markets, Marcio Brito, Head Investor of Banco Itaú International, highlights the change in market sentiment after a positive start to the year, pointing to weak economic data in the US, the resurgence of trade tensions, and growing concerns about an economic slowdown.

Check out some highlights:

• The University of Michigan Consumer Confidence Index and the US ISM Services surprised negatively, indicating that families are feeling the impact of high inflation and expensive credit.
• The Atlanta FED's GDP model went from projecting positive growth to a contraction of almost 3% in the first quarter, signaling a loss of strength in the American economy.
• The S&P 500 fell 1.42% in February and has accumulated a 2.2% drop in March. The result reflects doubts about the strength of the economy and companies' ability to maintain their profits.
• New tariffs on steel and aluminum imports from Canada and Mexico were announced by the US, reviving trade tensions and possible retaliation.
• The market begins to speculate about possible interest rate cuts by the FED, with expectations of up to 3 cuts for this year, due to the worsening of economic data.

Watch the full video below: