IMF Says Global Growth Set To Be Lowest Since 2008-09; Outlook Precarious

Trading 15 oct 2019 Commentaire »

Global economy is set to expand at the slowest pace in a decade this year amid weak manufacturing momentum, and rising trade and geopolitical tensions, the International Monetary Fund said Tuesday.

The global lender cut the growth forecast for this year to 3 percent from 3.3 percent projected in April, in its latest World Economic Outlook. The pace of growth this year will be the lowest since 2008-09 global financial crisis, the report said.

The projection for 2020 was lowered to 3.4 percent from 3.6 percent forecast in April. "The global economy is in a synchronized slowdown," IMF Chief Economist Gita Gopinath said.

"Growth continues to be weakened by rising trade barriers and increasing geopolitical tensions."

The IMF estimates that the US-China trade tensions will cumulatively reduce the level of global GDP by 0.8 percent by 2020.

The expected recovery in global growth in 2020 "is not broad-based and remains precarious", Gopinath said. Further, the IMF said without the ultra easy monetary policy in several advanced economies, global growth would be lower by 0.5 percentage points both this year and next.

However, the lender also warned about the financial risks that stem from keeping interest rates low for a long time.

"There is a significant risk of financial vulnerabilities growing, which makes effective macroprudential regulation imperative," the IMF said. "Countries should simultaneously undertake structural reforms to raise productivity, resilience, and equity," Gopinath said. "There is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions," the economist added. Advanced economies are forecast to grow at 1.7 percent both this year and next. Growth in the US is projected to ease to 2.4 percent this year and further to 2.1 percent next year. In the euro area, growth is seen slowing to 1.2 percent this year and then to rebound to 1.4 percent next year. In the UK, a similar trend is projected. China's growth is forecast to slow to 6.1 percent this year and to 5.8 percent next year. India's growth is seen slowing to 6.1 percent this year, but rebound to 7 percent in 2020.


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*IMF: Global Growth Outlook Remains Precarious

Trading 15 oct 2019 Commentaire »

IMF: Global Growth Outlook Remains Precarious


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*IMF Trims 2020 Global Growth Forecast To 3.4% From 3.6%

Trading 15 oct 2019 Commentaire »

IMF Trims 2020 Global Growth Forecast To 3.4% From 3.6%


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*IMF Cuts 2019 Global Growth Forecast To 3%, Lowest Since 2008-09

Trading 15 oct 2019 Commentaire »

IMF Cuts 2019 Global Growth Forecast To 3%, Lowest Since 2008-09


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Growth In New York Manufacturing Activity Unexpectedly Accelerates In October

Trading 15 oct 2019 Commentaire »

The Federal Reserve Bank of New York released a report unexpectedly showing a modest acceleration in the pace of growth in regional manufacturing activity in the month of October.

The New York Fed said its headline general business conditions index edged up to 4.0 in October after dipping to 2.0 in September, with a positive reading indicating an increase in regional manufacturing activity.

The modest uptick came as a surprise to economists, who had expected the general business conditions index to slip to 0.8.

The unexpected increase by the headline index partly reflected a notable acceleration in the pace of growth in shipments, with the shipments index jumping to 13.0 in October from 5.8 in September.

The report also said the new orders index came in unchanged from the previous month at 3.5, pointing to a small increase in orders.

Meanwhile, the number of employees index dipped to 7.6 in October from 9.7 in September, indicating a slowdown in the pace of job growth.

The prices paid index also slid to 23.1 in October from 29.4 in September, while the prices received index dropped to 6.3 from 9.2.

Looking ahead, the New York Fed said indexes assessing the six-month outlook suggest that optimism about future conditions improved somewhat but remained subdued.

The index for future business conditions rose to 17.1 in October from 13.7 in September but remained well below the levels seen for much of the past few years.

On Thursday, the Philadelphia Fed is scheduled to release a separate report on regional manufacturing activity in the month of October.


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Loonie Little Changed After Canada Existing Home Sales

Trading 15 oct 2019 Commentaire »

Canada existing home sales for September have been released at 9:00 am ET Tuesday. After the data, the loonie changed little against its major counterparts.

The loonie was trading at 81.90 against the yen, 0.8939 against the aussie, 1.4564 against the euro and 1.3229 against the greenback around 9:04 am ET.


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Hong Kong Monetary Authority Cuts Banks' Capital Buffer Amid Economic Weakness

Trading 15 oct 2019 Commentaire »

The Hong Kong Monetary Authority late Monday trimmed the countercyclical capital buffer for bank to 2 percent from 2.5 percent, citing the slowing economy amid the anti-government protests. "Economic indicators and other relevant evidence have signaled that the economic environment in Hong Kong has deteriorated significantly since June 2019," the HKMA Chief Executive Eddie Yue said.

"Lowering the countercyclical capital buffer at this juncture will allow banks to be more supportive to the domestic economy and help mitigate the economic cycle."


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Loonie Mixed Ahead Of Canada Existing Home Sales

Trading 15 oct 2019 Commentaire »

Canada existing home sales for September are due at 9:00 am ET Tuesday. Ahead of the data, the loonie traded mixed against its major counterparts. While the loonie rose against the euro and the aussie, it held steady against the greenback and the yen.

The loonie was worth 81.90 against the yen, 0.8936 against the aussie, 1.4556 against the euro and 1.3225 against the greenback at 8:55 am ET.


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New York Manufacturing Index Unexpectedly Edges Higher In October

Trading 15 oct 2019 Commentaire »

The Federal Reserve Bank of New York released a report on Tuesday unexpectedly showing a modest acceleration in the pace of growth in regional manufacturing activity in the month of October.

The New York Fed said its headline general business conditions index edged up to 4.0 in October after dipping to 2.0 in September, with a positive reading indicating an increase in regional manufacturing activity.

The modest uptick came as a surprise to economists, who had expected the general business conditions index to slip to 0.8.


The material has been provided by InstaForex Company - www.instaforex.com

*New York Manufacturing Index Edges Up To 4.0 In October

Trading 15 oct 2019 Commentaire »

New York Manufacturing Index Edges Up To 4.0 In October


The material has been provided by InstaForex Company - www.instaforex.com