Home

    You are here

IMF WASHINGTON SUMMIT CASTS GLOOM ON GLOBAL GROWTH

You are here

IMF WASHINGTON SUMMIT CASTS GLOOM ON GLOBAL GROWTH

Oct 13 2014, 9.07am GMT

Stock.com

The main message of the IMF meeting in Washington this weekend was vulnerability in global growth. Christine Lagarde, IMF Managing Director, described it as ‘not so vibrant’, other language used throughout the summit was ‘pessimism’, ‘gloomy’, ‘downbeat’.

Main points covered:

·         Warning that global growth is at its lowest ebb.

·         U.S feels robust in its economy since 2008 evidenced by unemployment figures falling month on month.

·         Little growth in Europe as Eurozone countries have relied on quantitative easing rather than evolving structural reform.

·         Sentiment affected in Germany with some fallout from the Russian sanctions holding exports down.

·         Germany singled out to invest more in infrastructure and education.

·         Oil prices down through Saudi reducing their export prices.

·         UK on the road to recovery – European countries need to mirror the UK fiscal policy.

·         Growth remains firm in emerging economies and buoyant in low-income developing countries.

·         Identified risks are: Challenges associated with monetary normalization in some advanced economies: increased risk-taking amidst low volatility in financial markets, and heightened geopolitical tensions.

The IMF communiqué reads, “A revival in economic activity is underway in some advanced economies, notably in the United States and United Kingdom. The recovery is modest in Japan, and tentative in the euro area.”

Overnight markets seemed to reflect the IMF mood:

Asian markets

Hang Seng down -147.72 (-0.64%) at 22,941

ASX 200 down -40.45 (-0.78%) at 5,148

US markets

S&P 500 down -22.08 (-1.15%) at 1,906

DJIA down -115.15 (-0.69%) at 16,544

Nasdaq down -102.10 (-2.33%) at 4,276

European markets

Eurofirst 300 down -20.82 (-1.58%) at 1,293

FTSE100 down -91.88 (-1.43%) at 6,340

CAC 40 down -67.74 (-1.64%) at 4,074

Dax down -216.21 (-2.40%) at 8,789

Indices Block Actions

Trading Platforms

MetaTrader

Through a simple native App download, be ready to log on to the powerful, intuitive MT4 platform and trade multiple assets on your desktop or through mobile

More on MetaTrader

WebTrader

Online access - anytime, anywhere - to your secure STOCK.com account, through desktop, tablet and mobile interfaces with no download necessary

More on WebTrader

Trading in CFDs involves significant risk to your invested capital