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Markets up despite IMF warning of 'the worst recession'

Market futures are pointing higher despite the International Monetary Fund sharply downgrading its global economic outlook and saying “this makes the Great Lockdown the worst recession since the Great Depression, and far worse than the Global Financial Crisis”.
Markets up despite IMF warning of 'the worst recession' Markets up despite IMF warning of 'the worst recession' Markets up despite IMF warning of 'the worst recession' Markets up despite IMF warning of 'the worst recession' Markets up despite IMF warning of 'the worst recession'

The IMF says the world economy will experience its worst recession since the Great Depression

Staff reporter

The IMF projected global growth to fall to -3% in 2020, a downgrade of 6.3 percentage points from January, "a major revision over a very short period".

The projection also assumed the COVID-19 pandemic and required containment would peak in the second quarter for most countries and recede in the second half of the year.

Most key markets closed higher yesterday, with the S&P 500 up 3.06% and the S&P/ASX200 up 1.9%, with both now having technically entered bull markets, having regained more than 20% since March's lows.

The FTSE 100 managed to create a fresh one-month high yesterday morning, IG senior market analyst Joshua Mahony said, but it ended up closing down 0.88%.

Precious metals producers Polymetal International (LSE: POLY) and Fresnillo (LSE: FRES) enjoyed gains of 6.56% and 4.9% respectively.

The gold price is around a seven-year high although there is a gap between the Comex gold futures price of US$1,750 an ounce and the spot price of $1,726/oz.

Metals and mining stocks were collectively higher in Toronto, where Katanga Mining (TSX: KAT) rose 30.7% - or C2c to close at 8.5c, still near a 52-week low of 5c reached earlier this month.