IMF reduced global economic growth

Daily Analysis - 10/04/2019

Trade tensions may create more uncertainty

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On Tuesday, the IMF decreased its global economic growth forecast once more for the year, indicating risks like tighter monetary policy by the FED and growing trade pressures.

IMF announced that it expects the global economy to improve by 3.3% in 2019. However, it is smaller from its earlier forecast of 3.5%, which was also a downgrade. The IMF also predicts that the economy will expand by 3.6% in 2020. The IMF said.  “The balance of risks remains skewed to the downside,” “Failure to resolve differences and a resulting increase in tariff barriers above and beyond what is incorporated into the forecast would lead to higher costs of imported intermediate and capital goods and higher final goods prices for consumers”.

Oil is expanding


On Wednesday Oil went higher, boosted by supply cuts from OPEC and U.S. penalties upon oil exporters Venezuela and Iran. However, profits were limited by expectations that economic retardation could quickly go out of fuel. U.S. West Texas Intermediate (WTI) crude oil futures were at up at $64.10 per barrel, above their last close. International benchmark Brent futures were up at $70.66 per barrel.

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Gold lost vs greenback


On Wednesday Gold prices fell while the popular greenback got stronger. However, the metal settled to near a 14 days top that hit in the previous session as stocks fell on fears over trade tensions among the United States and Europe and global growth. The U.S. gold futures fell 0.2% to $1,305 an ounce while the Spot gold dropped 0.1% to $1,302.02 per ounce.

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Asian stocks were mixed


On Wednesday Asia Stocks were mixed due to increased concerns over the scope for the global economy.

Mainland Chinese stocks fell by the morning session’s end, with the Shanghai composite declining more than 0.30%. The Shenzhen component fell about 0.26%. The Shenzhen composite also witnessed declines of nearly 3%.

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